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The Revolving Standby Letter of Credit is a specialized banking instrument used when parties require ongoing financial security that automatically renews after each utilization. This document is particularly relevant in the Nigerian market where continuous trade relationships and recurring financial commitments need to be secured. It provides a cost-effective alternative to maintaining multiple separate standby letters of credit, as the credit amount becomes available again after each drawing and settlement. The document must comply with Nigerian banking laws and regulations, including BOFIA 2020 and Central Bank of Nigeria directives, while also adhering to international banking standards. It's commonly used in trade finance, ongoing supply contracts, and recurring performance obligations where the beneficiary requires consistent financial backing.

1. Letter Head and Reference: Bank's letterhead, reference number, and date of issuance

2. Beneficiary Details: Full name and address of the party in whose favor the letter of credit is issued

3. Applicant Details: Full name and address of the party requesting the letter of credit

4. Credit Number: Unique identification number of the standby letter of credit

5. Credit Amount: Maximum amount available under the letter of credit and currency denomination

6. Revolving Terms: Specific terms of how the credit revolves (e.g., time basis, value basis) and reinstatement conditions

7. Availability and Expiry: How and where the credit is available, expiration date and time

8. Drawing Terms: Conditions and documentation required for drawing under the credit

9. Presentation Requirements: Specific documents and statements required for presentation

10. Partial Drawings: Whether partial drawings are permitted and any related conditions

11. Transfer Terms: Whether the credit is transferable and under what conditions

12. Governing Law: Specification of Nigerian law as governing law and relevant jurisdictional details

13. Applicable Rules: Reference to UCP 600 and/or ISP98 as applicable