This letter is written for a third party who authorises to have a right to the amount of letter of credit as per the request by the client. This letter is a means of contacting the third party client and requesting them to finish the transaction as approved in the contract that both parties have done at times.
Table of Contents
Transferable Letter of Credit Writing Tips:
- Write everything in brief, the amount, the mode of payment etc. Do not write a lengthy letter.A short and sweet letter actually makes a difference.
- Use a professional language as the letter is an official one. Use all the technical terms those are required to be used. Do not make use of a very simple language.
- Also mention all the terms and conditions in details. Also write about how the money has to be repaid. Write the address at which the demand draft has to be sent. This will make the things easy.
- Write about the rights that you are going to give to the person.
Transferable Letter of Credit Template
Subject – _____(mention the purpose)
We are writing this letter to you according to the request made by one of our main customer, ______(name of the company). A letter of credit for Rs ____(amount)- has been issued by The Board of directors of ____ bank(name of the bank). Moreover we authorise the letter of credit as it can be transferred to the third party client and we also issue them rights to reach a share of the amount with the aim of satisfy the requirements of our clients to obtain the contract that has done after the mutual parties of the agreement. We also allow you to access to the amount as long as you
make sure to send us a demand draft of the amount as agreed. This demand draft should be sent to our office address.
Transferable Letter of Credit Sample, Email and Example/Format
Subject – transferable letter of credit
Dear Mr. Joshi
This is as per requested by our important customer, XYZ Ltd. Navi Mumbai, The Board of directors of Maharashtra co-operative bank issue a letter of credit of rs. 50000/-. We further give authorisation to the said credit letter as it is transferable to the third party client giving them right to access a portion of the amount in order to fulfil the requirements of our client to acquire the contract that the parties have mutually agreed. We permit you to access to the amount on condition that you ensure to send us the amount by issuing a demand draft according to the agreement.
This letter would be addressed to a third party client providing them authorization to access the amount of credit letter as requested by the client. The letter is way to reach to the third party client and asking them to complete the transaction as agreed in the contract between both parties.
Dear Mr. Parekh
We are writing to you with reference to the request made to us by our valuable customer, Power Services, Bengaluru, we the Board Members of Circle Co-op Bank Pvt. Ltd, hereby, establish a letter of credit for Ten Thousand Rupees (Rs. 10,000).
We authorize the letter of credit as transferable to our third part client and allow them to access a part of the amount of credit to meet the requirements of our client for acquiring the contract agreed between the two parties.
We allow you to have access to the amount provided you give the assurance to deliver us the amount mentioned above by Demand Draft as per the agreement on the address mentioned below.
Circle Co-op Bank Pvt. Ltd
Bandra (west) Branch,
Mumbai 400 052
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