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This document is an Irrevocable Standby Letter of Credit issued by a bank in favor of the Kansas Office of Broadband Development (KOBD), establishing the terms under which funds are available to KOBD upon certain conditions being met initiated by a prospective subgrantee, specifically relating to the Broadband Equity, Access, and Deployment Program.
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01
Begin with the title 'Irrevocable Standby Letter of Credit'.
02
Include the date of issuance at the top of the document.
03
Clearly state the name and address of the issuing bank.
04
Provide the beneficiary's name and address.
05
Specify the amount that the letter of credit will cover.
06
Outline the terms and conditions under which the funds will be released.
07
Include the expiry date of the letter of credit.
08
Ensure that the document is signed by an authorized bank officer.
09
Make copies for all relevant parties.

Who needs irrevocable standby letter of?

01
Businesses entering into contractual agreements requiring payment guarantees.
02
Importers needing assurance from a bank for payments to exporters.
03
Contractors who want security for payment in construction projects.
04
Banks and financial institutions that offer guarantees on behalf of their clients.
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An irrevocable standby letter of credit is a financial document issued by a bank guaranteeing payment to a beneficiary if certain conditions are met, providing security in commercial transactions.
Typically, businesses and individuals involved in significant financial transactions or contracts may be required to file an irrevocable standby letter of credit as a form of assurance.
To fill out an irrevocable standby letter of credit, you need to provide the beneficiary's details, specify the terms of the guarantee, and include necessary payment amounts and conditions under which the payment can be triggered.
The purpose of an irrevocable standby letter of credit is to serve as a safety net for transactions, ensuring that the beneficiary will be compensated in case the applicant fails to fulfill contractual obligations.
The information that must be reported on an irrevocable standby letter of includes the names and addresses of the parties involved, the amount of credit, the expiration date, and the conditions for drawing the credit.
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