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The Installment Letter of Credit is a crucial financial instrument used in international trade transactions where payments need to be structured over time. This document is particularly relevant in the Malaysian context, where it must comply with the Financial Services Act 2013 and/or Islamic Financial Services Act 2013, depending on the banking system chosen. It's typically used for high-value transactions in sectors such as manufacturing, construction, or large equipment purchases, where immediate full payment isn't practical. The document details the installment schedule, conditions for drawings, document requirements, and payment terms, while incorporating both local Malaysian regulatory requirements and international banking practices under UCP 600. It provides security to sellers while offering buyers payment flexibility, making it an essential tool in structured trade finance.

1. Letter Header and Date: Bank's letterhead, reference number, and date of issuance

2. Beneficiary Details: Full name and address of the beneficiary (seller/exporter)

3. Applicant Details: Full name and address of the applicant (buyer/importer)

4. Credit Number: Unique LC identification number

5. Credit Amount: Total value of the letter of credit and currency

6. Form of Credit: Specification that this is an irrevocable installment letter of credit

7. Installment Structure: Clear outline of the number of installments and timing

8. Availability and Expiry: How and where the credit is available, and expiry date

9. Shipment Terms: Latest shipment date, partial shipments, transhipment conditions

10. Document Requirements: List of required documents for each installment drawing

11. Payment Terms: Specific conditions and timing for each installment payment

12. Special Conditions: Any special terms or conditions applicable to this LC

13. Governing Law: Statement that Malaysian law governs the LC

14. UCP Reference: Reference to UCP 600 governance

15. Authorization: Bank's authorized signatures and stamps