At the request of……………. (hereinafter referred to as “The Applicant”, we, (Name of issuing Bank), hereby issue our Irrevocable Standby Letter of Credit No……………..in your favour for the amount totally EUR………………which includes the principal amount and the accrued interest which are or may become payable to you by………………. (hereinafter referred to as “The Borrower”) under the loan agreement between you and the borrower.
This standby Letter of Credit is available with us by payment against presentation of your authenticated swift to us certifying that the borrower has failed to fulfill the contractual obligations under the above loan agreement and the amount of such claim (s) represents and covers the unpaid balance of indebtedness in connection with your granting loan facility to the borrower.
Upon our receipt of your authenticated swift drawn in compliance with terms and conditions of this standby L/C, we shall remit the proceeds to you within 7 working days in accordance with your instruction, but not exceeding the aggregate amount of USD…………..
All banking charges are for account of the applicant
Partial drawings are acceptable.