Please fill the following particulars in a credit form to issue a Red Clause credit.

  (1)issuing date: 6 June, 200×

  (2)Credit No. 256734

  (3)Credit amount: AUD64,000.00 (say Australian dollars...)

  (4)expiry date: 31 July, 200×

  (5)available with the advising bank by negotiation

  (6)shipment date: 16 July, 200×

  (7)special condition

  "The Issuing Bank authorises the Negotiating Bank to pay 60% of the amount of the Credit in advance to the beneficiary against the following presentations:

  Ⅰ. a receipt for the advance duly signed by the beneficiary;

  Ⅱ. an undertaking from the beneficiary to utilize the funds to purchase and pack the goods;

  Ⅲ. the undertaking of the beneficiary to present full set of documents as stipulated in the Credit to the Negotiating bank within the expiry of the credit.

  After the advance payment has been made to the beneficiary, the Negotiating Bank may claim reimbursement to be supported by the receipt and undertaking on the Issuing Bank which will reimburse the negotiating bank immediately.

  Upon negotiation of documents presented by the beneficiary, the advance payment for 60% of the credit amount will be deducted from the whole negotiating amount for beneficiary's refundment. The remaining approximate 40o-/o of the invoice value will be claimed by the Negotiating bank on the Issuing Bank for its reimbursement. "

Red Clause Credit

  Name of Issuing Bank           Place and date of issue

  Bank of Australia,            London, (1) ____________

  Name of Beneficiary            Advised through

  To: Marlin Wool Company, Melbourne    Bank of Australia, Melbourne

  Dear Sirs,

  At the request and on the instructions of (name and address of the applicant), we hereby issue an Irrevocable Documentary Credit No. (2) ______ for (3) ______ (say ____________) to expire on or before (4) ______ at Melbourne (5) __________________ of your draft for 40% of the invoice value drawn at sight on us against the presentation of the documents detailed herein:

  ① Commercial invoice in triplicate.

  ② Full set clean on board ocean bills of lading made out to order endorsed in blank marked "freight prepaid".

  ③ Packing list in triplicate.

  Evidencing shipment from London to Melbourne not later than (6) ______.

  Partial shipments not allowed. Transhipment allowed.

  (7)Special condition

  ____________________________________________________________

  ____________________________________________________________

  Instructions to the Negotiating Bank

  All shipping documents in compliance with the terms and conditions of the credit shall be forwarded by you immediately to us for beneficiary's refundment of 60% advance payment and claiming your reimbursement of 40% invoice value.

  We engage with drawers and bona-fide holders of draft (s) drawn under and negotiated in compliance with the terms and conditions of the credit that such draft (s) shall be duly honoured upon due presentation.

  This Credit is subject to UCP 600.

                                    Yours faithfully

                                    Bank of Australia,

                                    London

                                     dignature(s)