Revocable Letter Of Credit

A revocable letter of credit (LC) is a type of LC that can be modified or canceled by the issuing bank at any time, without prior notice to the beneficiary. This type of LC is rarely used in international trade transactions as it provides less security to the beneficiary. However, if you still require a template for a revocable LC, here's a basic outline:

[Your Bank's Letterhead]

[Date]

[Beneficiary's Name and Address]

Attention: [Contact Person]

Re: Revocable Letter of Credit (LC) No. [LC Number]

Dear Sir/Madam,

We hereby establish our irrevocable Letter of Credit in your favor for the account of [Applicant's Name] (the "Applicant") in the amount of [Amount in Words and Figures] ([Currency]), available by your draft(s) drawn on us at [Issuing Bank's Name and Address], at [Tenor] sight for any sum or sums not exceeding in the aggregate the above-mentioned amount.

The Letter of Credit is subject to the International Chamber of Commerce's Uniform Customs and Practice for Documentary Credits (UCP 600) and all applicable local laws and regulations.

The Letter of Credit will expire on [Expiry Date]. Any presentation of documents must be made to us on or before the expiry date.

Partial drawings are allowed, and each presentation must be accompanied by the following documents:

1. [Document 1]

2. [Document 2]

3. [Document 3]

4. [Add more if necessary]

In the event of any amendments required in this Letter of Credit, we undertake to notify you accordingly.

Please be advised that this Letter of Credit is revocable and may be amended or canceled at any time without prior notice to you. As such, we encourage you to consider the risks associated with this type of LC carefully.

We trust this arrangement will meet your requirements and remain at your disposal for any further clarification.

Yours faithfully,

[Your Name]

[Your Title]

[Issuing Bank's Name]

[Issuing Bank's Address]

[Contact Information]