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Non Transferable SBLC for Philippines

Non Transferable SBLC Template for Philippines

A Non-Transferable Standby Letter of Credit (SBLC) under Philippine law is a bank-issued financial instrument that provides a payment guarantee to a beneficiary, subject to Philippine banking regulations and the oversight of Bangko Sentral ng Pilipinas. This document represents an irrevocable undertaking by the issuing bank to pay a specified sum upon presentation of complying documents, with the distinct characteristic that it cannot be transferred to another party. The instrument is governed by Philippine law, particularly the General Banking Law of 2000 and relevant BSP circulars, while also incorporating international banking practices.

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Non Transferable SBLC

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What is a Non Transferable SBLC?

A Non-Transferable SBLC is a crucial financial instrument in Philippine banking and international trade, providing payment security while restricting the transfer of rights to alternative beneficiaries. This document is typically used when parties require a robust payment guarantee but want to ensure that only the named beneficiary can make drawings. It includes detailed provisions for drawing conditions, document presentation requirements, and compliance with Philippine banking regulations, particularly those set by the Bangko Sentral ng Pilipinas. The non-transferable nature makes it especially suitable for direct bilateral commercial relationships where the parties want to maintain strict control over who can claim payment. The document incorporates both local Philippine legal requirements and international banking standards, making it effective for both domestic and cross-border transactions.

What sections should be included in a Non Transferable SBLC?

1. Issuing Bank Details: Complete details of the bank issuing the SBLC, including registration number and authorized signatories

2. Beneficiary Information: Full details of the beneficiary including legal name, address, and registration information

3. Applicant Information: Complete details of the applicant requesting the SBLC

4. SBLC Number and Date: Unique identification number and issuance date of the SBLC

5. Amount and Currency: The maximum drawable amount and currency of the SBLC

6. Expiry Date: Clear statement of the expiry date and time, including timezone

7. Non-Transferability Clause: Explicit statement that the SBLC cannot be transferred or assigned

8. Purpose of SBLC: Clear description of the underlying transaction or obligation being secured

9. Drawing Conditions: Specific conditions and documentation required for drawing under the SBLC

10. Presentation Requirements: Detailed requirements for presentation of documents for drawing

11. Governing Law and Jurisdiction: Statement that Philippine law governs and specification of jurisdiction

12. Bank Undertaking: The bank's commitment to honor complying presentations

13. Authentication: Details of how the SBLC is authenticated (SWIFT, tested telex, etc.)

What sections are optional to include in a Non Transferable SBLC?

1. Partial Drawings Clause: Include when partial drawings are to be permitted under the SBLC

2. Reduction Schedule: Include when the SBLC amount reduces according to a predetermined schedule

3. Force Majeure: Include when specific force majeure provisions are required beyond standard banking practice

4. Anti-Money Laundering Compliance: Include when enhanced AML provisions are required beyond standard bank requirements

5. Multiple Currency Provisions: Include when drawings may be made in multiple currencies

6. Automatic Extension Clause: Include when the SBLC should automatically extend under certain conditions

7. Counter-Guarantee Reference: Include when the SBLC is issued under a counter-guarantee structure

What schedules should be included in a Non Transferable SBLC?

1. Schedule A - Form of Demand: Prescribed format for making a complying demand under the SBLC

2. Schedule B - Required Documents: Detailed list and formats of all required supporting documents

3. Schedule C - Authorized Signatories: List of authorized signatories with specimen signatures

4. Schedule D - Fee Schedule: Details of all applicable fees and charges

5. Appendix 1 - Drawing Certificate Template: Standard template for beneficiary's drawing certificate

6. Appendix 2 - Communication Procedures: Detailed procedures for all communications under the SBLC

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Philippines

Publisher

Genie AI

Document Type

Letter of Credit

Cost

Free to use
Relevant legal definitions










Clauses




































Relevant Industries

Banking and Financial Services

International Trade

Construction and Infrastructure

Manufacturing

Energy and Utilities

Real Estate Development

Telecommunications

Mining and Resources

Import/Export

Shipping and Logistics

Relevant Teams

Legal

Trade Finance

Credit Risk

Compliance

Treasury

International Banking

Operations

Finance

Corporate Banking

Documentary Credits

Relevant Roles

Trade Finance Manager

Banking Operations Director

Credit Risk Officer

Commercial Banking Manager

International Trade Specialist

Treasury Manager

Financial Controller

Compliance Officer

Legal Counsel

Chief Financial Officer

Banking Relationship Manager

Documentary Credits Specialist

Senior Credit Analyst

Trade Operations Manager

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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