The Non-Operative Letter of Credit is a crucial financial instrument used in international trade and commercial transactions within the Canadian banking framework. It serves as a payment security mechanism where a bank guarantees payment to a seller (beneficiary) on behalf of a buyer (applicant), subject to the presentation of compliant documents. The document is structured according to UCP 600 rules and Canadian banking regulations, providing a standardized format that's recognized internationally. Typically used in import/export transactions, large commercial purchases, or as security for performance obligations, the Non-Operative Letter of Credit offers protection to both parties by ensuring payment will be made once predetermined conditions are met. The document includes specific details about the transaction, required documentation, payment terms, and expiry dates, all while operating within Canadian federal and provincial legal frameworks.
Your data doesn't train Genie's AI
You keep IP ownership of your information
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
OR
Let Ƶ's market-leading legal AI identify missing terms, unusual language, compliance issues and more - in just seconds.
1. Letter Reference Number: Unique identification number for the Letter of Credit
2. Date of Issuance: Clear statement of when the Letter of Credit was issued
3. Issuing Bank Details: Complete name and address of the bank issuing the Letter of Credit
4. Applicant Details: Full name and address of the party requesting the Letter of Credit
5. Beneficiary Details: Full name and address of the party in whose favor the Letter of Credit is issued
6. Amount and Currency: Specific amount and currency of the Letter of Credit
7. Expiry Date: Clear statement of when the Letter of Credit expires
8. Place of Expiry: Location where the Letter of Credit expires
9. Form of Presentation: Requirements for how documents must be presented
10. Documentary Requirements: List of required documents for drawing under the Letter of Credit
11. Terms and Conditions: Specific conditions that must be met for the Letter of Credit to be honored
1. Partial Drawings: Include when partial drawings are allowed under the Letter of Credit
2. Transferability Clause: Include when the Letter of Credit can be transferred to another beneficiary
3. Revolving Credit Clause: Include when the Letter of Credit automatically renews under specified conditions
4. Red Clause: Include when advance payments are permitted to the beneficiary
5. Green Clause: Include when warehouse receipts can be used as collateral for advances
6. Force Majeure Provisions: Include when specific provisions for force majeure events are required
7. Governing Law Declaration: Include when specific jurisdiction needs to be explicitly stated
1. Schedule A - Document Presentation Requirements: Detailed list of required documents and their specific format requirements
2. Schedule B - Drawing Certificate Template: Standard format for beneficiary's drawing certificate
3. Schedule C - Special Payment Conditions: Any specific conditions or requirements for payment
4. Appendix 1 - UCP 600 Incorporation: Specific UCP 600 articles applicable to this Letter of Credit
5. Appendix 2 - Bank Contact Details: Complete contact information for all relevant banking departments
Authors
Relevant legal definitions
Clauses
Relevant Industries
Banking and Financial Services
International Trade
Import/Export
Manufacturing
Retail
Commodities Trading
Construction
Energy
Mining
Agriculture
Shipping and Logistics
Relevant Teams
Legal
Finance
Treasury
International Trade
Risk Management
Compliance
Trade Operations
Commercial Banking
Credit Administration
Documentary Collections
Relevant Roles
Trade Finance Manager
International Business Manager
Treasury Manager
Financial Controller
Credit Manager
Documentary Credits Specialist
Trade Operations Officer
Risk Management Officer
Compliance Officer
Commercial Banking Officer
Import/Export Manager
Chief Financial Officer
Banking Relationship Manager
Documentary Collections Officer
Legal Counsel
Trade Finance Analyst
Find the exact document you need
Import Bill Under Lc
A Canadian-law governed agreement establishing terms and conditions for import transactions using Letters of Credit, defining rights and obligations of all parties involved in international trade transactions.
find out more
Standby Letter Of Credit Cost
A Canadian-compliant document detailing the complete fee structure and costs associated with issuing and maintaining a standby letter of credit.
find out more
Letter Of Credit Project (Finance)
A Canadian-law governed Letter of Credit facility agreement for project finance transactions, establishing terms, conditions, and security arrangements under federal and provincial regulations.
find out more
Lc Sight And Usance
A Canadian-law governed Letter of Credit document combining immediate (sight) and deferred (usance) payment options for international trade transactions.
find out more
Letter Of Credit Limit
A Canadian law-governed agreement establishing a bank facility for issuing letters of credit up to a specified limit, outlining terms, conditions, and compliance requirements.
find out more
Lc Invoice
A Canadian-compliant commercial invoice specifically formatted to support Letter of Credit requirements in international trade transactions, adhering to federal banking and trade regulations.
find out more
Irrevocable Unconfirmed Letter Of Credit
A Canadian-governed banking instrument providing irrevocable payment commitment in international trade, subject to document compliance and UCP 600 rules.
find out more
Lc Payment Terms In Export
Canadian-law governed Letter of Credit payment terms document specifying conditions and requirements for export transactions.
find out more
SBLC Dlc
A Canadian-law governed banking instrument providing payment security in international trade transactions, following both domestic and international banking standards.
find out more
Irrevocable Letter Of Credit Cost
A Canadian banking document detailing the costs and fees associated with an irrevocable letter of credit, governed by Canadian banking laws and UCP 600.
find out more
Cash Backed SBLC
Canadian law-governed agreement for a cash-backed Standby Letter of Credit, establishing terms, conditions, and obligations for all parties involved.
find out more
SBLC Transferable
A Canadian law-governed Transferable Standby Letter of Credit document that establishes terms for a transferable bank guarantee, incorporating federal banking and provincial securities regulations.
find out more
Export Lc Discounting
A Canadian law-governed agreement for discounting export letters of credit, enabling exporters to obtain immediate financing against their LC receivables.
find out more
SBLC Non Recourse Loan
Canadian law-governed non-recourse loan agreement secured by SBLC, establishing terms for limited-recourse financing with specific collateral provisions.
find out more
SBLC Trade Program
Canadian-law governed agreement establishing terms and conditions for a Standby Letter of Credit (SBLC) Trade Program, including issuance, maintenance, and drawing conditions.
find out more
Loan Against Lc
A Canadian-law governed agreement establishing a loan facility secured by a Letter of Credit, incorporating federal and provincial banking regulations.
find out more
Application For Letter Of Credit
A Canadian-compliant formal application document used to request a bank to issue a letter of credit for international trade transactions.
find out more
SBLC Buyers
A Canadian-law governed agreement establishing terms for SBLC issuance between a buyer and issuing bank, incorporating federal banking and provincial contract law requirements.
find out more
Transferring Bank In Lc
A Canadian-law governed agreement for transferring rights under a Letter of Credit from the first beneficiary to a second beneficiary, executed by a transferring bank.
find out more
Revolving SBLC
A Canadian-law governed Revolving Standby Letter of Credit providing a renewable guarantee facility, structured under federal banking regulations and international banking practices.
find out more
Payment Terms Dlc
Canadian-law governed payment terms document for Documentary Letter of Credit arrangements, detailing requirements and obligations for international trade transactions.
find out more
Non Transferable SBLC
A Canadian law-governed Non-Transferable Standby Letter of Credit providing payment guarantee from a bank to a beneficiary, with explicit prohibition on transfer or assignment.
find out more
Negotiation Bank In Lc
A Canadian-law governed Negotiation Bank Letter of Credit document establishing terms for secure international trade payment through bank negotiation.
find out more
Freely Negotiable Letter Of Credit
A Canadian-law governed, bank-issued payment guarantee document that provides security in trade transactions while allowing negotiation and transfer of payment rights.
find out more
Time Letter Of Credit
A Canadian-law governed bank-issued document guaranteeing payment to a seller at a specified future date upon presentation of compliant documents.
find out more
Straight Letter Of Credit
A Canadian-law governed banking instrument providing secure payment in international trade through bank-guaranteed payment upon presentation of compliant documents.
find out more
Non Operative Letter Of Credit
A Canadian-compliant banking instrument that provides a guaranteed payment commitment from a bank to a beneficiary upon meeting specified documentary conditions.
find out more
Letter Of Credit 90 Days
A Canadian-compliant banking instrument providing payment assurance in trade transactions, valid for 90 days, governed by federal banking laws and UCP 600.
find out more
Letter Of Credit 60 Days
A Canadian-law governed Letter of Credit providing a 60-day payment deferral period, issued by a bank as a secure payment mechanism for international trade transactions.
find out more
Letter Of Credit 30 Days
A Canadian-law governed Letter of Credit providing 30-day deferred payment terms, where a bank guarantees payment to a seller upon document compliance.
find out more
Irrevocable Confirmed Lc At Sight
A Canadian-compliant financial instrument providing guaranteed payment at sight in international trade, backed by both issuing and confirming banks under federal banking laws and UCP 600 rules.
find out more
Domestic Letter Of Credit
A Canadian bank-issued payment guarantee instrument for domestic transactions, governed by Canadian banking laws and regulations, providing payment security between domestic buyers and sellers.
find out more
Digital Letter Of Credit
A Canadian-compliant digital banking instrument that guarantees payment in international trade transactions, subject to electronic document presentation under Canadian law.
find out more
Unsecured Letter Of Credit
A Canadian-governed bank instrument providing payment guarantee to a seller without requiring security from the buyer, governed by Canadian banking laws and UCP 600.
find out more
Unconditional Letter Of Credit
A Canadian-law governed bank undertaking providing unconditional payment assurance to a beneficiary upon presentation of complying documents.
find out more
Transit Letter Of Credit
A Canadian-compliant banking instrument that guarantees payment for goods in transit, combining domestic banking regulations with international trade practices.
find out more
Synthetic Letter Of Credit
A Canadian-law governed financial instrument combining traditional letter of credit features with synthetic structures to provide enhanced flexibility in trade finance transactions.
find out more
Syndicated Letter Of Credit
Canadian law-governed agreement establishing terms for a multi-bank letter of credit facility with shared risk and commitment structures.
find out more
Surety Backed Letter Of Credit
A Canadian-law governed financial instrument combining a letter of credit with surety protection, providing enhanced security for complex commercial transactions.
find out more
Structured Letter Of Credit
A Canadian-law governed banking instrument providing secured payment commitment with structured terms for complex commercial transactions, following UCP 600 rules and Canadian banking regulations.
find out more
ұԾ’s Security Promise
Genie is the safest place to draft. Here’s how we prioritise your privacy and security.
Your documents are private:
We do not train on your data; ұԾ’s AI improves independently
All data stored on Genie is private to your organisation
Your documents are protected:
Your documents are protected by ultra-secure 256-bit encryption
We are ISO27001 certified, so your data is secure
Organizational security:
You retain IP ownership of your documents and their information
You have full control over your data and who gets to see it
.png)