Sample Credit Letter

By | April 3, 2010

ABC Bank,

Fisher’s villa,

Trojan Street,

Washington, Dc 20024

22-April-2010
Irrevocable letter of Credit No: 88888

U.S. Department of Agriculture
1256 Maryland Park, SW
Suite 460
Washington, DC 20024


Dear Gentleman,

We hereby start our irrevocable credit in your favor for the sum of Fifty Thousand dollars ($ 50,000), which has to be made for the payment at the sight by your request, on the presentation of this draft which is accompanied by the statement.

“The Commodity Credit Corporation (CCC)” has the right on the amount that is drawn in accordance by means of the conditions and terms of one or more “Dairy Export incentive Program (DEIP)”. The Agreements that have entered into by the exporter pursuant to 7 C.F.R. Part 1448, and DEIP Invitation No3456.

This Letter of Credit is valid until 23-april-2012, however, that this Letter of Credit will be automatically extended without amendment for 22 April 2012 from the present date to any future expiry date thereof, unless the Bank provides a written notice to the “Commodity Credit Corporation of Agriculture” at least thirty (30) days before the date of election that this letter should not be renewed. This notice required hereunder will be assumed to have been given when acknowledged by you.

The Credit letter is to be issued which is subjected to the “Customs and the Practice for the Documentary Credits” of, 2007 Revision, the International Chamber of Commerce Publication” No. 650

Sincerely,

ABC Bank.