Bank Letter of Credit Clause Samples
A Bank Letter of Credit clause establishes the requirement for one party to provide a letter of credit from a bank as a form of payment assurance to the other party. Typically, this clause outlines the conditions under which the letter of credit must be issued, its amount, validity period, and the process for drawing funds if contractual obligations are not met. By mandating a bank-backed guarantee, the clause ensures that the seller or service provider has a secure and reliable method of receiving payment, thereby reducing the risk of non-payment and enhancing trust between the parties.
Bank Letter of Credit. Requirements for Bank Letter of Credit are outlined in Exhibit CC (Criteria and Standards for Letters of Credit and Certificates of Deposit).
Bank Letter of Credit. On or after October 31, 2008, Operator will provide a bank Letter of Credit to the Contractor within 10 days following the date of Contractor’s written notification to Operator of for the commencement of mobilization from the Drilling Rig’s current location in Turkey to the exportation port in Turkey for US$ 675,000 (Six Hundred and Seventy Five Thousand United States Dollars). Contractor shall return the bank letters of credit upon receiving all payments hereunder including but not limited to the Operating, Stand By, Force Majeure rates Mobilization, Demobilization, Transportation fees, Lost In Hole charges arising out of this Contract. The Letter of Credit shall be acceptable to Citibank and be irrevocable.
Bank Letter of Credit. The Bank shall have committed, satisfactorily to Investor, to issue the irrevocable Letter of Credit referred to in Recital B above.
Bank Letter of Credit. The irrevocable letter of credit issued by a commercial bank acceptable to Owner, in a form acceptable to Owner in its sole discretion and drawable at a financial institution located in Nashville, Tennessee, and having an expiration date not prior to ninety (90) days following the bid opening date. Proposer is encouraged to use a Disadvantaged Financial Institution with respect to its Letter of Credit.
Bank Letter of Credit. Bank Letter of Credit" means each Letter of Credit issued by ---------------------- a bank acceptable to and approved by Agent for the account of Borrowers and supported by a risk participation agreement issued by Agent.