Credit only states 'This Credit (LC) is transferable by the Beneficiary".
Do you think this clause is acceptable ?
(Note that there is no nominated transferring bank in this clause nor it states the beneficiary would request the Issuer to transfer the Credit. It looks like the beneficiary can transfer the Credit to the second beneficiary by its own without referring to the Issuer).
L/C is transferable
L/C is transferable
The clause as stated does not modify article 38. By this clause it means the LC is a transferable LC. If the LC is available with a named nominated bank, the nominated bank may transfer the LC at the request of the beneficiary. If the LC is available with any bank, it has to specify a bank to be the transferring bank. The beneficiary cannot act as a transferring bank.
L/C is transferable
Which means we can accept the clause as stated in the L/C.
[edited 10/24/2013 2:06:29 PM]
[edited 10/24/2013 2:06:29 PM]
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HOANGTHIANHTHU_invalid
- Posts: 189
- Joined: Fri Apr 05, 2019 5:15 pm
L/C is transferable
Hi,
The sentence “This credit is transferrable by the beneficiary” implies that the first beneficiary is allowed to have the credit transferred (by the transferring bank) to the second beneficiary.
If the credit is available with a named nominated bank then that nominated bank may act as the transferring bank. If the credit is available with any bank then it needs to nominate a named transferring bank.
Agreed with Gabriel that the beneficiary cannot act as a transferring bank.
Regards,
N.H.Duc
The sentence “This credit is transferrable by the beneficiary” implies that the first beneficiary is allowed to have the credit transferred (by the transferring bank) to the second beneficiary.
If the credit is available with a named nominated bank then that nominated bank may act as the transferring bank. If the credit is available with any bank then it needs to nominate a named transferring bank.
Agreed with Gabriel that the beneficiary cannot act as a transferring bank.
Regards,
N.H.Duc