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Beneficiary Requirement on Letters of Credit

New gTLD Advisory
Advisory number: R1-A02-0050
Publication date: 5 February 2013

About this advisory: Based on evaluations performed to date, there are some areas that are generating a large number of clarifying questions. The intent of this advisory is to provide applicants with information to prepare in advance of receiving clarifying questions. We recommend that applicants take pro-active steps to address any relevant issues prior to receiving clarifying questions.

Disclaimer: ICANN issues this document to provide information that is intended to assist applicants with preparing in advance of receiving clarifying questions. It illustrates areas generating a large number of clarifying questions based on applications evaluated to date. It, in no way, represents a complete list of issues for which a clarifying question may be issued. This material is for information only and does not represent all requirements and criteria that the applicant must satisfy. ICANN is not providing legal, financial, business, or any other kind of advice. This material does not represent a modification to the Applicant Guidebook, or the terms and conditions of the new gTLD program. This material also does not represent a waiver of any ICANN policy, procedure or agreement.

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Relevant Applicant Guidebook reference

Question 50(b), second bullet under sub-section (i).

Clarification of the beneficiary requirement

The AGB states that the "LOC must name ICANN or its designee as the beneficiary." If the LOC does not include that exact language, ICANN will consider it an acceptable equivalent if ICANN is named as the beneficiary and the letter of credit is fully transferable or assignable by ICANN, in ICANN’s sole discretion.