Letter of Credit

Date: _________

LETTER OF CREDIT (GENERAL)

__________________________

Dear Sir,

We hereby undertake to honor and pay upon maturity any draft or drafts drawn on us at sight, issued by __________________________, having its address at __________________________, up to an aggregate amount of $_____(________________________ & _____/100 dollars), when such drafts are duly negotiated through your bank.

Respectfully,

_____________________________________

__________________________ by: ________________

How to Use This Sample Format

This guidance is provided to help you understand the purpose and proper use of this sample document. A Letter of Credit (L/C) is a commonly used instrument that ensures payment to a party under specified conditions. This template meets the basic requirements for a general L/C.

It is advisable to make multiple copies of this document. Distribute one copy to each involved party and retain one in the official transaction file for your records.