DG-83: In the Standard IPA Letter of Credit, can Paragraph 9 explicitly reference the expiry date as a termination point of the Letter of Credit? For example, by adding a clause (c) that states that the Letter of Credit will terminate on the earliest of: “(a) the date you have made drawings which exhaust the amount available to be drawn under this Letter of Credit; or (b) the date we receive from you a Certificate of Cancellation in the form of Annex 3 hereto together with the original of this Letter of Credit (and subsequent amendments, if any) returned for cancellation; or: (c) the Stated Expiry Date?

Paragraph 1 of the Letter of Credit states:

“It is a condition of this Letter of Credit that it shall be deemed automatically extended, without amendment, for additional period(s) of 364 days from the expiration date hereof, or any future expiration date”

By proposing to add the condition to Paragraph 9 of the Letter of Credit that the Letter of Credit will expire on “the Stated Expiry Date”, you directly contradict the terms in Paragraph 1. The Letter of Credit cannot both be: (i) automatically renewing for an additional year and (ii) terminate on the stated expiration date, which will be one year from issuance. As such, this proposed modification, and any modification similar in concept, is unacceptable.