借款保函格式文本英文

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StandbyLoanLetterofCreditSampleText(English)

1.Introduction

Astandbyletterofcreditisalegalcommitmentoftheissuingbanktopayacertainamountofmoneytothebeneficiaryintheeventthattheaccountpartyfailstofulfillitsobligationsasspecifiedinthecontractbetweenthebeneficiaryandtheaccountparty.Itiscommonlyusedintradefinanceandservesasaguaranteeforthesellerthathewillbepaidifthebuyerisunabletomeetthepaymentobligations.

2.TermsandConditions

InconsiderationofloaningtheBorrowerupto[Amount]U.S.Dollars,Bank[Name],herebyissuesthefollowingStandbyLetterofCreditinfavorofLender[Name],underthefollowingtermsandconditions:

TheBorrowershallrepaytheloanplusinteresttotheLenderonorbefore[Date]asagreedbetweentheParties.

IftheBorrowerdefaultsinrepaymentoftheloan,theLendermaydrawontheStandbyLetterofCredittopayitselftheamountowed.

TheStandbyLetterofCreditshallremainvaliduntil[Date].IftheBorrowerdefaultsontheloanduringthistime,theLendermaydrawontheStandbyLetterofCredittopayitselftheamountowed.

ThisStandbyLetterofCreditistransferableandassignablewithouttheconsentoftheBorrower.

3.Beneficiary

TheBeneficiaryofthisStandbyLetterofCreditisLender[Name].

4.IssuingBank

TheIssuingBankisBank[Name],withthefollowingdetails:

Name:

Address:

SwiftCode:

5.DocumentsRequired

ThefollowingdocumentsmustbepresentedbytheBeneficiarytodrawtheamountoftheStandbyLetterofCredit:

OriginalStandbyLetterofCredit

CopyoftheLoanAgreementbetweentheBorrowerandtheLender

Beneficiary’swrittendemandforpaymentundertheStandbyLetterofCredit

AnyotherdocumentsrequiredbytheStandbyLetterofCredit

6.GoverningLaw

ThisStandbyLetterofCreditshallbegovernedbyandinterpretedinaccordancewiththelawsof[Jurisdiction].AnydisputesarisingoutoforinconnectionwiththisStandbyLetterofCreditshallbesubmittedtotheexclusivejurisdictionofthecourtsof[Jurisdiction].

7.Signatures

ThisStandbyLetterofCreditshallbebindingupontheBorrower,Lender,andtheIssuingBankuponexecutionofthisdocument.

FortheBorrower:

AuthorizedSignatory

FortheLender:

AuthorizedSignatory

FortheIssuingBank:

AuthorizedSignatory

Conclusion

ThisStandbyLetterofCreditprovidessecuritytotheLenderandensuresthattheBorrowerwillrepaytheloanandinte