Dear Sir/Madam,
We, [Your Company Name], hereby confirm our readiness to issue an MT760 Standby Letter of Credit in favor of [Beneficiary Name], to secure any financial obligations arising from a contractual agreement between [Your Company Name] and [Beneficiary Name]. This letter serves as a guarantee and assurance of payment up to the amount specified herein, payable on demand.
The terms and conditions associated with this MT760 Standby Letter of Credit are as follows:
1. This Letter of Credit shall remain in effect until [Expiration Date]. It is irrevocable, unconditional, and binding upon our bank. Any demand made under this MT760 will be honored without delay or dispute.
2. The maximum liability of our bank under this Letter of Credit is USD [Amount], which represents the principal sum plus any accrued interest and fees. Payments will be made in the currency stated.
3. All claims under this MT760 should be presented at our bank's office within [Claim Period] following the expiration date. Claims must be accompanied by supporting documents that clearly demonstrate the beneficiary's failure to receive payment under the underlying agreement.
4. Our bank has no responsibility or liability whatsoever for the performance or non-performance of any underlying contract or legal obligation between [Your Company Name] and [Beneficiary Name].
5. This MT760 Standby Letter of Credit is subject to the Uniform Customs and Practice for Documentary Credits (UCP 600) and the International Standby Practices (ISP98), as published by the International Chamber of Commerce (ICC).
Please note that all costs, charges, and expenses related to the issuance and negotiation of this MT760 Letter of Credit will be borne by the applicant, [Your Company Name].
Should you require any further information or clarification regarding this MT760 Standby Letter of Credit, please do not hesitate to contact our bank at the below-mentioned details.
Yours faithfully,
[Your Name]
[Your Position]
[Your Company Name]
[Your Contact Information]
