The Usance LC Discounting agreement is essential for South African trade finance operations where beneficiaries seek early payment of their Letter of Credit proceeds. This document becomes relevant when an exporter/seller, who is a beneficiary of a Usance LC, requires immediate funding rather than waiting for the LC's maturity date. The agreement outlines the terms under which a bank will purchase the LC payment rights at a discount, specifying discount rates, documentation requirements, and risk allocation. It incorporates South African banking regulations, foreign exchange controls, and international trade finance practices. The document addresses various scenarios including both domestic and cross-border transactions, providing flexibility while ensuring regulatory compliance with South African financial laws.
Your data doesn't train Genie's AI
You keep IP ownership聽of your information
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
OR
Let tiktok成人版's market-leading legal AI identify missing terms, unusual language, compliance issues and more - in just seconds.
1. Parties: Identification of the discounting bank and the beneficiary/seller seeking discounting
2. Background: Context of the LC transaction, including details of the underlying LC and trade transaction
3. Definitions: Key terms used in the agreement including banking, LC, and discounting-specific terminology
4. Discounting Facility: Core terms of the discounting arrangement including facility amount and availability
5. Discount Rate and Calculations: Methodology for calculating the discount rate and associated charges
6. Conditions Precedent: Prerequisites for utilizing the discounting facility
7. Representations and Warranties: Standard and LC-specific representations by the beneficiary
8. Documentation Requirements: Required documents for discounting and their presentation standards
9. Payment Terms: Terms regarding disbursement of discounted amounts and repayment obligations
10. Rights and Obligations: Detailed responsibilities of each party under the agreement
11. Events of Default: Circumstances constituting default and consequent remedies
12. Governing Law and Jurisdiction: Applicable law and dispute resolution mechanisms
13. Notices: Communication procedures between parties
14. General Provisions: Standard boilerplate clauses including amendments, assignments, and severability
1. Security Arrangements: Required when additional security or collateral is being provided for the discounting facility
2. Insurance: Included when specific insurance requirements are imposed on the beneficiary
3. Foreign Exchange Provisions: Required when the LC and discounting involve different currencies
4. Sanctions and Compliance: Detailed compliance requirements for high-risk transactions or parties
5. Electronic Processing: Terms for electronic presentation and processing of documents when applicable
6. Bank's Right of Recourse: Additional recourse provisions beyond standard terms when required by risk assessment
7. Syndication Rights: Included when the discounting bank may want to syndicate the facility
1. Schedule 1 - LC Details: Copy or key details of the underlying Letter of Credit
2. Schedule 2 - Pricing Schedule: Detailed breakdown of discount rates, fees, and charges
3. Schedule 3 - Document Checklist: List of required documents for discounting and their format requirements
4. Schedule 4 - Standard Forms: Templates for discounting requests, declarations, and other routine communications
5. Schedule 5 - Compliance Requirements: Detailed KYC and compliance requirements
6. Appendix A - Calculation Examples: Examples of discount calculations and payment scenarios
7. Appendix B - Operating Procedures: Detailed procedures for document presentation and processing
Relevant legal definitions
Clauses
Relevant Industries
Banking & Financial Services
International Trade
Manufacturing
Import/Export
Commodities Trading
Retail
Agriculture
Mining
Energy
Telecommunications
Construction
Automotive
Relevant Teams
Trade Finance
Corporate Banking
Treasury
Risk Management
Compliance
Legal
Operations
Finance
International Banking
Credit Administration
Documentary Credits
Transaction Banking
Relevant Roles
Trade Finance Manager
Corporate Banking Officer
Finance Director
Treasury Manager
Credit Risk Officer
Compliance Officer
Documentary Credits Specialist
International Trade Specialist
Chief Financial Officer
Banking Relationship Manager
Export Finance Manager
Legal Counsel
Operations Manager
Financial Controller
Find the exact document you need
Letter Of Credit Cost
A South African banking document detailing all costs, fees, and charges associated with issuing and maintaining a letter of credit, in compliance with local banking regulations and international standards.
find out more
Standby Letter Of Credit Cost
A South African banking document detailing the complete fee structure and costs associated with issuing and maintaining a standby letter of credit, in accordance with local banking regulations.
find out more
Letter Of Credit Project (Finance)
A South African law-governed Letter of Credit document structured for project finance transactions, combining payment security with project-specific requirements and milestones.
find out more
At Sight Letter Of Credit
A South African-compliant Letter of Credit providing immediate payment upon presentation of compliant documents, governed by local banking regulations and UCP 600.
find out more
Lc Sight And Usance
A South African law-governed Letter of Credit document combining sight and usance payment options for international trade transactions.
find out more
Irrevocable Unconfirmed Letter Of Credit
An Irrevocable Unconfirmed Letter of Credit under South African law, providing a binding bank payment guarantee in international trade transactions.
find out more
Loan Against Letter Of Credit
South African law-governed agreement for providing loan financing against a Letter of Credit, typically used in international trade transactions.
find out more
Cash Credit Account Closure Letter
A formal South African banking document confirming the closure of a cash credit account, outlining closure terms and final settlement requirements under local banking regulations.
find out more
Utility Letter Of Credit
A South African law-governed bank guarantee document ensuring payment security for utility services, issued by a bank in favor of a utility provider.
find out more
Lc Agreement
A South African law-governed agreement establishing terms for a bank-issued Letter of Credit, facilitating secure international trade transactions.
find out more
Standby Guarantee
A South African law-governed bank guarantee that provides payment security upon documented default of specified obligations.
find out more
Irrevocable Letter Of Credit Cost
A South African law-governed banking instrument that provides guaranteed payment terms and associated costs for international trade transactions under an irrevocable letter of credit facility.
find out more
Credit Facility Offer Letter
A South African law-compliant formal letter from a financial institution offering credit facilities to a borrower, detailing terms, conditions, and statutory requirements.
find out more
Usance Lc Discounting
South African agreement for discounting Usance Letters of Credit, governing the early payment of LC proceeds at a discount under South African banking and trade finance regulations.
find out more
Transferring Bank In Lc
A South African law-governed agreement for a bank acting as Transferring Bank in Letter of Credit transactions, detailing transfer terms and regulatory compliance requirements.
find out more
Payment Against Lc
A South African law-governed agreement establishing payment terms and conditions through Letter of Credit in international trade transactions.
find out more
Non Transferable Letter Of Credit
A South African-compliant banking instrument that provides an irrevocable payment guarantee from a bank to a beneficiary, featuring non-transferability provisions.
find out more
Negotiation Bank In Lc
South African banking agreement governing LC document negotiation terms and conditions under local banking laws and international trade practices.
find out more
Cumulative Revolving Letter Of Credit
A South African law-governed banking instrument establishing a renewable credit facility where unused amounts accumulate, typically used in international trade transactions.
find out more
Transferable Lc At Sight
A South African law-governed transferable letter of credit that provides immediate payment upon document presentation, commonly used in international trade transactions.
find out more
Small Business Letter Of Credit
A South African banking instrument providing payment security for small business transactions, governed by local banking laws and regulations.
find out more
Secured Letter Of Credit
A South African law-governed banking instrument combining letter of credit features with security arrangements for enhanced protection in international trade transactions.
find out more
Local Letter Of Credit
A South African banking instrument providing payment security for domestic trade transactions, governed by local banking laws and regulations.
find out more
Loan Facility Letter
A South African banking document that outlines credit facility terms and conditions, serving as a formal offer of lending facilities in compliance with local banking regulations.
find out more
Non Operative Letter Of Credit
A South African banking instrument providing payment security in international trade transactions, governed by local banking laws and UCP 600.
find out more
Letter Of Credit 90 Days
A South African bank-issued payment guarantee instrument with 90-day terms, securing international trade transactions under local banking laws and UCP 600.
find out more
Letter Of Credit 60 Days
A South African bank-issued financial instrument guaranteeing payment to a seller after 60 days, subject to document compliance and governed by South African law.
find out more
Letter Of Credit 30 Days
A South African law-governed banking instrument guaranteeing payment within 30 days for international trade transactions, subject to document compliance.
find out more
Irrevocable Confirmed Lc At Sight
A South African-governed irrevocable confirmed Letter of Credit providing immediate payment upon document presentation, subject to UCP 600 rules and local banking regulations.
find out more
Inland Letter Of Credit
A South African banking instrument providing payment security in domestic trade transactions, governed by local banking and commercial law.
find out more
Import Documentary Letter Of Credit
A bank-issued trade finance document governed by South African and international banking laws, guaranteeing payment to an exporter upon presentation of compliant import documents.
find out more
Domestic Lc
A South African domestic Letter of Credit document that guarantees payment between local parties, governed by South African banking and commercial laws.
find out more
Discrepancy Letter Of Credit
A formal South African banking document acknowledging Letter of Credit discrepancies and requesting payment processing despite identified issues.
find out more
Digital Letter Of Credit
A South African law-governed digital payment guarantee instrument used in international trade, combining traditional letter of credit features with electronic transaction capabilities.
find out more
Business Letter Of Credit
A bank-issued payment guarantee document under South African law that ensures secure payment in commercial transactions, subject to document compliance.
find out more
Beneficiary In Letter Of Credit
A South African law-governed financial instrument issued by a bank guaranteeing payment to a seller (beneficiary) in international trade upon presentation of compliant documents.
find out more
Bank Guarantee And Letter Of Credit
South African law-compliant template for Bank Guarantees and Letters of Credit, establishing terms and conditions for financial institutions providing banking guarantees and documentary credits.
find out more
Unsecured Letter Of Credit
A South African law-governed banking instrument providing an unsecured payment guarantee from a bank to a beneficiary upon presentation of specified documents.
find out more
Trade Finance Letter Of Credit
A bank-issued payment guarantee document governed by South African law and UCP 600, providing security in international trade transactions.
find out more
Unconditional Letter Of Credit
A South African law-governed irrevocable bank undertaking to make payment against compliant documents, subject to UCP 600 and local banking regulations.
find out more
骋别苍颈别鈥檚 Security Promise
Genie is the safest place to draft. Here鈥檚 how we prioritise your privacy and security.
Your documents are private:
We do not train on your data; 骋别苍颈别鈥檚 AI improves independently
All data stored on Genie is private to your organisation
Your documents are protected:
Your documents are protected by ultra-secure 256-bit encryption
We are ISO27001 certified, so your data is secure
Organizational security:
You retain IP ownership of your documents and their information
You have full control over your data and who gets to see it
.png)