SAMPLE LETTER OF CREDIT

 

 Name and Address of Bank Date: __________________ Irrevocable letter of Credit No. ______________ Beneficiary: Commodity Credit Corporation Account Party: Name of Exporter Address of Exporter Gentlemen: We hereby open our irrevocable credit in your favor for the sum or sums not to exceed a total of _______________dollars ($__________), to be made available by your request for payment at sight upon the presentation of your draft accompanied by the following statement: (Insert applicable statement)/2 This Letter of Credit is valid until _____________________/3, provided, however, that this Letter of Credit will be automatically extended without amendment for _________________/4 from the present or any future expiration date thereof, unless at least thirty (30) days prior to any such expiration date the Issuing Bank provides written notice to the Commodity Credit Corporation at the U.S. Department of Agriculture, 14th and Independence Avenue, S.W., Stop 1025, Washington, D.C. 20250-1025, of its election not to renew this Letter of Credit for such additional ______________________/5 period. The notice required hereunder will be deemed to have been given when received by you. This letter of Credit is issued subject to the Uniform Customs and Practice for Documentary Credits, 2007 Revision, International Chamber of Commerce Publication No. 600 (Name of Bank) By: _______________________ ________________________________________

INSTRUCTIONS FOR LETTER OF CREDIT ISSUED FOR DEIP BID

 

 1. Send to: Via U.S. Mail Treasurer, CCC U.S. Department of Agriculture 14th & Independence Avenue,   S.W. Stop 1025 Washington, DC 20250-1025
 Via Express Mail or Courier Treasurer, CCC U.S. Department of Agriculture 1250 Maryland Avenue, SW Suite 420 Washington, DC 20024


2. If the letter of credit is to apply to any Dairy Export Incentive Program (DEIP) Invitation:

 “The Commodity Credit Corporation (CCC) has a right to the amount drawn in accordance with the terms and conditions of one or more Dairy Export Incentive Program (DEIP) Agreements entered into by the exporter pursuant to 7 C.F.R. Part 1494, and the applicable DEIP Invitation(s) issued by CCC.” If the letter of credit is to apply to a single DEIP Invitation: “The Commodity Credit Corporation (CCC) has a right to the amount drawn in accordance with the terms and conditions of one or more Dairy Export incentive Program (DEIP) Agreements entered into by the exporter pursuant to 7 C.F.R. Part 1494, and DEIP Invitation No. ________________. If the letter of credit is to apply to more than one specific DEIP Invitation: “The Commodity Credit Corporation (CCC) has a right to the amount drawn in accordance with the terms and conditions of one or more Dairy Export incentive Program (DEIP) Agreements entered into by the exporter pursuant to 7 C.F.R. Part 1494, and DEIP Invitation Nos. ________________, ___________________, and _________________.”

3. Insert the last date of the month in which the 90th day after the date of the letter of credit falls (e.g., if the date of the letter of credit is March 15, 2003, the date to be inserted would be Jun 30, 2003).

 4. Insert a time period of either “one (1) year” or a specific number of whole month(s) which total less than one year (e.g., “one (1) month,” “two (2) months,” etc.).

5. Insert the same time period as inserted in the previous space (e.g., “one (1) year,” “one (1) month,” etc.).