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A Standby Letter of Credit For Lease is commonly used in Hong Kong's commercial property market as an alternative to cash security deposits in lease arrangements. This instrument is particularly valuable when dealing with substantial rental commitments or when tenants prefer to maintain cash liquidity. The document provides the landlord with a direct, independent obligation from a bank to pay a specified sum upon presentation of stipulated documents, typically including a declaration of tenant default. It contains specific details about the underlying lease, the maximum drawable amount (usually equivalent to several months' rent), validity period, and drawing conditions. The document follows Hong Kong banking practices and laws, while typically incorporating international standby letter of credit rules (ISP98). It's especially relevant in high-value commercial leases, corporate tenancies, and situations where the tenant's creditworthiness needs to be supplemented by bank security.

1. Bank Information and Reference: Details of the issuing bank, SWIFT code, and reference number of the SBLC

2. Date and Place of Issue: The date and location where the SBLC is issued

3. Beneficiary Details: Full name and address of the landlord (beneficiary)

4. Applicant Details: Full name and address of the tenant (applicant)

5. Amount and Currency: The maximum drawable amount and currency of the SBLC

6. Expiry Date: The date until which the SBLC remains valid and enforceable

7. Purpose and Underlying Transaction: Reference to the lease agreement and purpose of the SBLC as security for lease obligations

8. Drawing Conditions: Specific conditions and required documents for the beneficiary to draw on the SBLC

9. Governing Law and Jurisdiction: Specification of Hong Kong law and jurisdiction

10. Applicable Rules: Reference to ISP98 or UCP 600 as applicable rules