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Letter of Credit

A completed documentary credit example that states UCP 600 applies only because the credit expressly adopts it and preserves documentary independence.

Jurisdiction: England and Wales - completed fictional worked example

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Important: This sample provides general legal information only and is not legal advice. Check the law, prescribed forms and signing requirements that apply to your exact jurisdiction and circumstances before use.

# LETTER OF CREDIT

Date: 31 July 2031

Parties: Briar Importers Limited, Hanseatic Valve GmbH and Meridian Bank plc

## 1. Purpose and parties

At Briar Importers Limited's request, Meridian Bank plc issues this irrevocable documentary credit in favour of Hanseatic Valve GmbH for EUR 186,000. The credit is unconfirmed and available with Meridian by sight payment; it is not a promise that the goods themselves are satisfactory.

## 2. Facts, scope and terms

The goods are 600 industrial valves under Purchase Order BV-4408, CIF Felixstowe, with shipment from Hamburg by 20 September 2031. Partial shipment is not permitted and the credit expires at Meridian's London counters on 11 October 2031.

## 3. Process and responsibilities

The beneficiary must present a signed commercial invoice, full clean on-board bill of lading, packing list, insurance certificate for 110% of CIF value and certificate of origin within 21 days of shipment and before expiry. Documents must be presented together and examined on their face.

## 4. Evidence, records and safeguards

This credit expressly incorporates UCP 600. Meridian deals with documents, not goods or the underlying sale, and the credit is independent of the purchase contract. A complying presentation will be honoured even if Briar alleges a commercial dispute, subject to fraud and applicable law.

## 5. Review, escalation and outcome

Meridian will notify discrepancies under the UCP process and may seek Briar's waiver without extending the expiry or guaranteeing that waiver is accepted. Amendments require the parties' stated consent; the advising bank has no payment obligation unless it separately confirms the credit.

## 6. Reservations and practical protections

Briar must maintain sufficient funds and comply with sanctions and trade-control requirements. The bank's examination does not certify quality, title, origin or customs clearance. Fraud concerns must be supported promptly and do not permit unilateral non-payment outside the credit's terms.

## 7. England and Wales law and completion

England and Wales law governs the credit and the courts of England have non-exclusive jurisdiction. It is issued on 31 July 2031; authenticated bank messaging is the permitted operational channel, while notices may also be delivered by post as a separate method.

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