SBLCs Sample Clauses
An SBLC (Standby Letter of Credit) clause defines the terms under which a standby letter of credit is issued and utilized as a financial guarantee in a contract. This clause typically outlines the conditions for drawing on the SBLC, such as what constitutes a valid demand for payment, the documentation required, and the timeframes involved. For example, it may specify that the beneficiary can claim payment if the applicant fails to fulfill contractual obligations, provided they submit a written statement and supporting documents to the issuing bank. The core function of this clause is to provide security to the beneficiary by ensuring a reliable payment mechanism in case of default, thereby reducing credit risk and enhancing trust between parties.
SBLCs. Prior to the issuance of any SBLC, Bank shall receive a duly executed SBLC Agreement for the SBLC in form and substance acceptable to Bank and Borrower shall fulfill all the conditions set forth in §5.1, §5.2 and §5.3 as though an Advance were being made rather than an SBLC being issued, and any failure to do so immediately upon demand shall constitute a default of a covenant or agreement hereunder.
SBLCs procure that each SBLC shall at all times remain in full force and effect in favour of the Lender with an expiry date not earlier than the date falling one month after the Final Maturity Date; and
SBLCs. Subject to the limitations of Section 2.1 hereof and as herein provided, the Borrower may from time to time during the Commitment Period, upon one day's prior written notice, request that the Bank issue SBLCs for the account of the Borrower. No SBLC shall expire after the Termination Date.