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The LC Letter of Credit is a fundamental instrument in international trade finance, providing security and payment assurance to parties involved in cross-border transactions. Under Dutch law, this document serves as a bank's irrevocable commitment to pay the beneficiary (typically the seller) upon presentation of compliant documents specified in the LC. The document incorporates both Dutch legal requirements and international banking practices, particularly the UCP 600 rules. It is commonly used when parties seek to mitigate risks in international trade, especially when dealing with new business relationships or operating in challenging markets. The LC specifies all payment conditions, documentation requirements, timeframes, and obligations of all parties involved, creating a secure and standardized framework for international trade transactions.

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

2. LC Number and Type: Unique LC reference number and specification of LC type (irrevocable, confirmed, etc.)

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: Specified currency and amount of the LC, both in figures and words

6. Expiry Details: Expiry date and place for presentation of documents

7. Available With/By: Specification of how and where the credit is available (payment, acceptance, negotiation)

8. Required Documents: Detailed list of documents required for LC presentation

9. Shipment Terms: Details of goods, shipment date, partial shipments, transhipment provisions

10. Presentation Period: Time period within which documents must be presented after shipment

11. Bank Charges: Allocation of banking charges between parties

12. Governing Law: Statement that Dutch law and UCP 600 govern the LC

13. Authentication: Bank's authorized signatures and authentication details