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An Unsecured Letter of Credit is a specialized banking instrument used when a bank has sufficient confidence in the applicant's creditworthiness to issue the LC without requiring security. This document type is particularly relevant in Malaysian trade finance where established companies with strong credit ratings seek to facilitate international trade transactions. The document must comply with Malaysian banking regulations, particularly the Financial Services Act 2013 and Bank Negara Malaysia guidelines, while also adhering to international standards such as UCP 600. It includes detailed specifications about payment terms, document requirements, and conditions for payment, providing security for sellers while offering flexible financing for buyers. The unsecured nature of this LC type makes it especially valuable for companies with strong banking relationships and proven track records, as it doesn't tie up their assets as collateral.

1. Letter Reference Number: Unique identification number for the LC

2. Date of Issuance: The official date when the LC is issued

3. Applicant Details: Full name and address of the party requesting the LC

4. Beneficiary Details: Full name and address of the party in whose favor the LC is issued

5. Currency and Amount: Specification of the currency and the maximum amount available under the LC

6. Expiry Date: Date and place of expiry of the LC

7. Form of Presentation: Specification of how and where documents should be presented

8. Description of Goods/Services: Clear description of the underlying transaction

9. Required Documents: List of documents that must be presented for payment

10. Payment Terms: Conditions and timing of payment

11. Governing Law Declaration: Statement that the LC is governed by Malaysian law and UCP 600