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Red Clause Letter Of Credit

This letter would be addressed to any third part customer and allow them to access the amount of letter of credit as requested by the customer. The letter is a way to tell the third party customer the clauses for withdrawing the money and providing them information about repayment of the amount.


Anand Kamath,

Prem Industries Ltd,

Classic Complex,

Circle Lane,

New Delhi

28th Sept’ 2010

Subject: Red clause letter of credit

Dear Mr. Kamath,

I am writing to you with reference to the request made by our customer, Exide Manufacturers, we are happy to inform you that our senior officials are happy to provide you financial support for the completion of the project. To that effect we establish a Red Clause letter of credit in favor Exide Manufacturers for Twenty Thousand Rupees (Rs. 20,000).

As per the letter of credit our senior officials authorize to withdraw the said amount. You can withdraw the amount by presenting the Demand Draft at Deshkmukh Bank, Greater Noida Branch within the stipulated time of the Letter of credit.

We are happy to serve and hope that you would adhere to the terms and conditions of our company and repay us the amount as per agreed.

Yours truly,

For Deshmukh Bank

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