Application for Irrevocable Standby Letter of Credit at a glance
What it is: Application for Irrevocable Standby Letter of Credit: please issue for the account of the Applicant an irrevocable Standby Letter of Credit.
Who signs: AUTHORIZED SIGNATURE(S): PLEASE SIGN OFFICIALLY.
A filled-in Application for Irrevocable Standby Letter of Credit example: an importer applies for a standby credit
How to fill out Application for Irrevocable Standby Letter of Credit, box by box
L/C NO., DATE, AIRMAIL and FULL CABLE
To: HSBC Bank USA, National Association, Trade and Supply Chain, 2 Hanson Place, 14th Floor, Brooklyn, NY 11217. L/C NO. is (FOR BANK USE ONLY).
Enter the DATE.
Check one box to say how the Standby Letter of Credit is issued: Airmail, Airmail via courier, Airmail with short preliminary cable advice or Full cable.
Applicant, beneficiary, currency and amount
Enter the applicant under FOR ACCOUNT OF (APPLICANT).
Enter the beneficiary under IN FAVOR OF (BENEFICIARY).
Enter the TYPE OF CURRENCY and the AMOUNT IN NUMBERS AND WORDS.
DRAFTS MUST BE PRESENTED TO DRAWEE'S COUNTERS ON OR BEFORE the EXPIRATION DATE: enter that date.
Documents that go with the draft
AVAILABLE BY DRAFTS AT SIGHT DRAWN ON YOURSELVES ACCOMPANIED BY THE FOLLOWING DOCUMENTS: check NONE, BENEFICIARY'S SIGNED STATEMENT or OTHER DOCUMENTS.
For a BENEFICIARY'S SIGNED STATEMENT, WORDED AS FOLLOWS, kindly state the exact wording that is to appear on the statement accompanying the draft.
To attach other documents, check OTHER DOCUMENTS and list them.
Special instructions
SPECIAL INSTRUCTIONS TO BE AN INTEGRAL PART OF THIS APPLICATION: if necessary, attach addendum and sign in addition to this application.
International Standby Practices or Uniform Customs and Practice (check one)
The Applicant hereby certifies that the transactions covered by the Credits are not prohibited under the Foreign Assets Control Regulations of the United States Treasury Department or Tax Reform Act of 1976 as amended or the Export Administration Act of 1977 as amended or related laws and regulations thereto and that any transfer of moneys covered by the Credits conforms in every respect with all existing United States laws and Government regulations. Each Credit shall be subject to the Uniform Customs and Practice for Documentary Credits (UCP) most recently published by the International Chamber of Commerce (ICC) or if so elected by the Applicant in this application, by International Standby Practices 1998, ICC Publication 590 in effect at the same time of the issuance of such Credit (ISP 98). The provisions herein are supplemental to, and not in substitution of said UCP (or, as applicable, ISP 98) to the extent consistent with the provisions of this Agreement. This Agreement shall be construed under the laws of New York State, as the same may be in effect from time to time, except to the extent such laws are inconsistent with said UCP (or, as applicable, ISP 98). “Check the Box” Election Each Credit shall be subject to (check one): International Standby Practices 1998, ICC Publication 590 Uniform Customs and Practice for Documentary Credits.
Applicant, address and signature
Enter the APPLICANT and the ADDRESS.
AUTHORIZED SIGNATURE(S): PLEASE SIGN OFFICIALLY.
Print the name under the authorized signature.
Enter the ACCOUNT NUMBER.
Account party
The AUTHORIZATION AND AGREEMENT OF ACCOUNT PARTY is to be executed if the applicant is not also the account party.
Enter Name, Address and By for the ACCOUNT PARTY - AS INDICATED ON FRONT.
More rules for Application for Irrevocable Standby Letter of Credit
As to drafts, demands or drawings under, or purporting to be under the Credits which are payable in United States Currency, the Applicant agrees in the case of each sight draft, to reimburse you at your office in immediately available funds on demand, and in the case of each time draft, at the date of maturity of such time draft, the amount due on such draft, or, if so demanded by you, to pay at your office in advance the amount to pay such draft.
If for any reason you make payment under the Credits prior to your receipt of the aforementioned funds from the undersigned, the Applicant agrees to pay you interest per annum at a rate equal to the then publicly announced HSBC Bank USA, National Association Prime Rate, as it may change from time to time, plus 3% covering the period commencing from the day of your payment and ending upon your receipt of the funds the Applicant remits to you for the actual days elapsed on the basis of a 360-day year.
Applicant agrees that failure of the applicant to object in writing to the issuers payment and/or acceptance of any drawings under a credit by the earlier of (A) 5 days after the date the applicant receives the documents and (B) 5 days after the date the applicant receives any notice including but not limited to advices of payment that the Issuer has paid and/or accepted a conforming presentation under the documentary credit shall be conclusively deemed to be an acceptance by the applicant that the presentation is in conformity with the terms and conditions of the credit. Both the Issuer and the applicant agree that 5 days is a reasonable time.
The Applicant further agrees that if at any time or from time to time you shall retain an attorney for the enforcement or protection of your rights hereunder, then such reasonable attorney's fees shall be 20% of the amounts then owing on the Obligation or Obligations with respect to which such attorney was retained and that upon each such retention said attorney's fees will be immediately due and owing.
The Applicant agrees that all Credits issued under this Agreement shall be irrevocable.
Common questions about Application for Irrevocable Standby Letter of Credit
Are there fees?
The Applicant agrees to pay you, on demand, your usual commission and all charges and expenses paid or incurred by you or your correspondents in connection therewith, including costs of reserve requirements, if any.
Sources
[1] Application for Irrevocable Standby Letter of Credit LC 3 DC (Rev. 3/08), HSBC Bank USA, N.A. (the served file; no issuer file found) (the Official source link on this page).
