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Irrevocable Letter of Credit SCP 005

This document is an irrevocable letter of credit issued by a bank for the benefit of the Texas Department of Licensing and Regulation, securing obligations of a service contact provider applicant. It outlines the terms, including the amount, effective and expiration dates, and conditions for honoring drafts. The letter will automatically extend unless the bank provides a written notice of non-renewal at least 60 days prior to expiration.

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8 views2 pages

Irrevocable Letter of Credit SCP 005

This document is an irrevocable letter of credit issued by a bank for the benefit of the Texas Department of Licensing and Regulation, securing obligations of a service contact provider applicant. It outlines the terms, including the amount, effective and expiration dates, and conditions for honoring drafts. The letter will automatically extend unless the bank provides a written notice of non-renewal at least 60 days prior to expiration.

Uploaded by

anhtrungtruc
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd

<BANK LETTERHEAD>

Date: <DATE>

Issued By: <NAME AND COMPLETE ADDRESS OF BANK>

Beneficiary: Texas Department of Licensing and Regulation


P.O. Box 12157
Austin, TX 78711

Applicant: <NAME AND COMPLETE ADDRESS OF SERVICE CONTACT PROVIDER


APPLICANT>

Irrevocable Letter of Credit Number: <NUMBER>

Amount: <$ AMOUNT>

Effective Date: < DATE>

Expiration Date: <DATE>, or any automatically extended period thereafter.

We hereby issue our irrevocable letter of credit number <NUMBER> in your favor for the
account of <NAME OF SERVICE CONTACT PROVIDER APPLICANT> for a sum not to
exceed <$ AMOUNT>.

This irrevocable letter of credit is given as security for the benefit of a party who may suffer
damages resulting from the failure of <NAME OF SERVICE CONTACT PROVIDER
APPLICANT> to meet or perform its obligations under Texas Occupations Code, Chapter 1304, or
the rules or regulations pertaining thereto.

We will honor your draft at sight drawn on <NAME OF BANK> in an amount not to exceed
<$ AMOUNT> in the aggregate. Drafts hereunder must be marked “Drawn Under
Irrevocable Letter of Credit No. <NUMBER>”, and must be accompanied by a written
statement from you stating that <NAME OF SERVICE CONTACT PROVIDER APPLICANT>
failed to meet or perform its obligations under Texas Occupations Code, Chapter 1304, or
the rules or regulations pertaining thereto. Such statement is to be signed by an authorized
official of the Beneficiary.

It is a condition of this irrevocable letter of credit that it shall be automatically extended


without amendment for an additional period of one (1) year from the original expiration date
and each future expiration date, unless at least sixty (60) days prior to the then current
expiration date, we send notice in writing to you that we elect not to automatically extend
this irrevocable letter of credit for an additional one (1) year period. Notification will be sent
to the Beneficiary at the address above and to the attention of “Compliance Division--
Service Contract Providers Program.”

We agree that we shall have no duty or right to inquire as to the basis upon which
Beneficiary has determined to present to us any draft under this irrevocable letter of credit.
Any draft(s) drawn under and in compliance with the terms and conditions of this irrevocable
letter of credit will be duly honored. Multiple and partial drafts are permitted, not to exceed
the aggregate amount of this irrevocable letter of credit.

Drafts on the irrevocable letter of credit shall be submitted to: <NAME, ADDRESS AND
PHONE NUMBER OF CONTACT PERSON AT THE BANK.>

Signature of Authorized Bank Official Title of Authorized Bank Official


Printed Name of Authorized Bank Official Date

TDLR Form SCP 005 (6/2010) This document is available on the TDLR website at [Link].

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