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Stand By Letter Of Credit

Note: The following forms and documents are prepared by the above under the laws and practice prevailing as of [Date]. Seldom is a model form or document directly suitable to a transaction without adaptation to the particularities and circumstances of the matter.

STAND-BY LETTER OF CREDIT

WE (......)

hereby open our irrevocable and non-transferable stand-by letter of credit No. (......) in favour of (......) (the Beneficiary).

By order of (......) (the Applicant)

FOR (......) ((......)).

The stand-by letter of credit shall be valid until (......) and shall be available by your drafts drawn on sight and against presentation of:

(1) the Beneficiary's signed statement that the Applicant has failed to perform its contractual obligations as specified; and

(2) copy arbitration award in the Beneficiary's favour

This stand-by letter of credit is subject to UCP 400. Any dispute arising in connection with this stand-by letter of credit shall be finally settled by arbitration under the Rules of Conciliation and Arbitration of (......) by one or more arbitrators appointed pursuant to the Rules.

This stand-by letter of credit shall be governed by and construed in accordance with the laws of (......). The place of arbitration shall be (......).

Dated the (......) day of 20..

Signed: (......)