IRREVOCABLE LETTER OF CREDIT

IRREVOCABLE LETTER 

OF CREDIT 

Irrevocable Letter of Credit Account Number:____________________________________________________ 

PLACE AND DATE OF ISSUE: 

____________________________, VIRGINIA 

____________________________, 20_____ 

PLACE AND DATE OF ISSUE: 

____________________________, VIRGINIA 

____________________________, 20_____ 

ACCOUNT PARTY:______________________________________________________________________ 

BENEFICIARY: Rappahannock Electric Cooperative 

247 Industrial Court, P O BOX 7388 

Fredericksburg, VA 22404 

AMOUNT: $_____________________________________________ 

CREDIT AVAILABLE WITH: _______________________________________________________ 

_______________________________________________________ 

BY: Payment against presentation of the documents detailed herein and your drafts at: 

SIGHT DRAWN ON _____________________________________________________________ 

_________________________________ BANK, ____________________________, VIRGINIA 

We hereby establish our Irrevocable Letter of Credit in your favor for the account of 

_______________________ (the “Account Party”), for the aggregate amount not exceeding 

_______________ United States Dollars ($____________), available to you at sight upon demand at 

our counters at (Location) on or before the expiration hereof against presentation to us of the following 

statement, dated, certified as true and signed by a representative of the beneficiary: 

“The draft of even date with this certification represents the amount due to us as ______________________ 

has failed to effect payment to us for electric service, etc. 

This Irrevocable Letter of Credit shall be automatically extended for additional periods of one year from 

the present or each future expiration date, unless at least sixty days prior to such date, we send you 

notice in writing by certified mail, return receipt requested mail, authenticated teletransmission, or hand 

delivery at the above address, that we elect not to renew this Letter of Credit for such additional period 

but in no event shall this Letter of Credit be extended beyond the final expiry date of ________________. 

Any such notice shall be effective when sent by us and upon such notice to you, you may draw a draft 

on us at sight under this Letter of Credit for an amount not to exceed the balance remaining in this 

Letter of Credit within the then applicable expiry date, by a dated statement dated, certified as true 

and signed by your representative or by your authenticated teletransmission reading: “We hereby 

demand U.S. $_______________ as we have received notice from________________________________ 

____________________ of their decision not to extend Letter of Credit No. _____________. We hereby 

agree to hold such payment as collateral for the obligations of ________________________________ to 

us, said collateral to be deposited in an interest bearing account, said accrued interest becoming the 

exclusive property of Rappahannock Electric Cooperative not subject to the claim, demand of offset of 

_________________________ said interest amounts representing the administrative cost to Rappahannock 

Electric Cooperative of maintaining a collateral account”.

In the event that this Letter of Credit is automatically extended beyond its present expiration date in 

accordance with the terms and conditions of this Letter of Credit, the aggregate amount available under this 

Letter of Credit shall be automatically reduced in accordance with the following schedule: 

DATE OF AMOUNT OF AGGREGATE 

REDUCTION REDUCTION AMOUNT AVAILABLE 

_____________________ _______________________ _______________________ 

_____________________ _______________________ _______________________ 

_____________________ _______________________ _______________________ 

_____________________ _______________________ _______________________ 

_____________________ _______________________ _______________________ 

In the event a drawing is paid under this Letter of Credit prior to the scheduled reduction, the amount of the 

scheduled reduction shall be reduced by the amount of such (previous) payment(s). 

In the event of an amendment (s) increasing or decreasing the credit value, the amount of the scheduled 

reduction shall be adjusted accordingly. 

Partial drawings are permitted hereunder. 

We hereby agree with you that documents drawn under and in compliance with the terms of this Letter of 

Credit shall be duly honored upon presentation as specified. 

This Letter of Credit shall be governed by the Uniform Customs and Practice for Documentary Credits, 1993 

Revision, International Chamber of Commerce Publication No. 500 (the “UCP”) and the provisions of the 

Uniform Commercial Code - Letters of Credit, title 8.5A of the Code of Virginia (1950), as amended (“Va. 

UCC-LOC”), except to the extent that the terms hereof are inconsistent with the provisions of the UCP or Va. 

UCC-LOC, including but not limited to Articles 13(b) and 17 of the UCP and Section 8.5A-108(b) of the Va. 

UCC-LOC, in which case the terms of this Letter of Credit shall govern. 

With respect to Article 13(b) of the UCP and Section 8.5A-108(b) of the Va. UCC-LOC, the Issuing Bank shall 

have a reasonable amount of time, not to exceed three (3) banking days following the date of its receipt of 

documents from the beneficiary, to examine the documents and determine whether to take up or refuse the 

documents and to inform the beneficiary accordingly. 

In the event of an Act of God, riot, civil commotion, insurrection, war or any other cause beyond our control 

that interrupts our business (collectively, an “Interruption Event”) and causes the place for presentation of 

this Letter of Credit to be closed for business on the last day for presentation, the expiry date of this Letter of 

Credit will be automatically extended without amendment to a date thirty (30) calendar days after the place 

for presentation reopens for business. 

This Letter of Credit is transferable, and we hereby consent to such transfer, but otherwise may not be 

amended, changed or modified without the express written consent of the beneficiary, the Issuing Bank and 

the Account Party. 

[BANK SIGNATURE] 

_____________________________________________________________________________________________ 

STATE OF___________________________ CITY/COUNTY OF_____________________________, to wit: 

The foregoing instrument was acknowledged before me this _______day of __________________, 20_____, 

by________________________________________, Principal. 

My commission expires ________________________ Registration No.: ________________________________ 

(SEAL) 

____________________________________________ 

Notary Public 

#3768300 v1 036860.00002

IRREVOCABLE LETTER OF CREDIT

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