Sample Irrevocable Standby Letter Of Credit printable pdf download

Sample Letter of Credit

(DATE OF ISSUE)

IRREVOCABLE STANDBY LETTER OF CREDIT NO. (L/C NO.) FOR ( $ AMOUNT

CAD.)

BENEFICIARY

APPLICANT

The Receiver General for Canada

as represented by the Director,

Oil and Gas Management Directorate,

Northern Oil and Gas Branch

Department of Indian Affairs and

Northern Development

6th floor, 10 Wellington Street

Hull, Quebec

K1A OH4

AMOUNT $...........................Cad.

(amount in words)---00/100 Canadian Dollars

EXPIRY DATE

at our counters in OTTAWA, Ontario

At the request of and for the account of our customer (Applicant - Name and Address) the

“Customer”, we hereby establish in the Beneficiary’s favour our Irrevocable Standby Letter of

Credit number (L/C NO.) for a sum not exceeding in the aggregate amount of (Amount in

Words)--00/100 Canadian Dollars ($..............................Cad.).

This Credit is given in support of the Customer’s agreement with the Oil and Gas Management

Directorate, Northern Oil and Gas Branch, Northern Affairs Sector, Department of Indian Affairs

and Northern Development, and Exploration Licence No #........... (the “Licence”) and relates to

the Terms and Conditions in the Licence dated (Date of Licence), equal in the amount to the

sum of this Credit.

(In the event that the Exploration Licence has not yet been issued, then refer to the Parcel No...........

and Call for Bids name, date, and indicate that an Exploration Licence will be issued for this Parcel).

Our obligation to pay is irrevocable, absolute and unconditional and, in furtherance and support

thereof and without limiting the irrevocable, absolute and unconditional nature of our obligations

to the Beneficiary hereunder, any demand by the Beneficiary shall be honoured without any

inquiry as to the Beneficiary’s rights to make such demand, without regard to or recognition of any

contractual rights, claims or defences (legal or equitable) of the Customer against the Beneficiary

and without regard to any other defence to the Beneficiary’s demand for payment, arising as a

result of any dispute between the Beneficiary and the Customer or between the Customer and

ourselves.

Payment under this Irrevocable Standby Letter of Credit shall be available to the Beneficiary on

sight against presentation by the Beneficiary to (issuing Bank, name and address) of a written

demand for payment, which demand we shall honour without inquiring whether the Beneficiary

has a right as between the Beneficiary and the Customer to make such a demand, without

recognizing any claims of the Customer and without raising any defence arising as between the

Customer and ourselves, accompanied by a certification signed by the Beneficiary or an

authorized representative that the Customer is in default under the terms of the Licence.

Partial drawings are permitted.

It is understood that the Bank is obligated under this Credit to the payment of monies only and not

the performance of the Licence.

It is a condition of this Letter of Credit that it shall be deemed to be automatically extended

without amendment, for one year from the present or any future expiration date hereof, unless

one hundred and twenty (120) days prior to any such date, we shall notify the Beneficiary in

writing at the address noted above, by Certified Mail that we elect not to consider this Letter of

Credit renewed for any such additional period. Upon receipt by you of such notice, you may draw

by means of your written demand accompanied by your above written certificate.

This Irrevocable Standby Letter of Credit is subject to the Uniform Customs and Practices for

Documentary Credits (1993 Revision), International Chamber of Commerce Publication No. 500.

Notwithstanding Article 17 of said Publication, if this Documentary Credit expires during an

interruption of business as described in Article 17, we agree to effect payment if this

Documentary Credit is drawn on us within fifteen (15) days after resumption of business.

Countersigned:

__________________

(Authorized Signature)

Sample Irrevocable Standby Letter Of Credit

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