Transfer of L/C
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AnastasiaZykova
- Posts: 3
- Joined: Fri Apr 05, 2019 5:23 pm
Transfer of L/C
With ref to article 48g I have a question. May the L/C be transferred two times if it is mentioned in its terms that it can be transferred twice. In case of positive reply, shall we than ignore the stipulation of the article that 'the credit can not be transferred at the request of the second bene to any subsequent third bene? I would be pleased if you could share your opinion towards this.
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MaximPankratov
- Posts: 7
- Joined: Fri Apr 05, 2019 5:14 pm
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MaximPankratov
- Posts: 7
- Joined: Fri Apr 05, 2019 5:14 pm
Transfer of L/C
Article 48 'g' states 'Unless otherwise
stated in the credit,...'. Therefore,
if a Credit allows you to make a
transfer twice, you can do it, but my
personal opinion it's quite difficult
to execute technically.
stated in the credit,...'. Therefore,
if a Credit allows you to make a
transfer twice, you can do it, but my
personal opinion it's quite difficult
to execute technically.
Transfer of L/C
Take care with this.
Refer Article 48G. "Unless otherwise stated in the Credit, a transferable Credit can be transferred once only. Consequently, the Credit cannot be transferred at the request of the Second Beneficiary to any subsequent Third Beneficiary"
Remember this can be complicated as under UCP Article 48 A. "A transferable Credit is a Credit under which the Beneficiary (First Beneficiary) may request the bank authorised to pay, incur a deferred payment undertaking, accept or negotiate (the 'Transferring Bank'), or in the case of a freely negotiable Credit, the bank specifically authorised in the Credit as a Transferring Bank, to make the Credit available in whole or in part to one or more other Beneficiary(ies) (Second Beneficiary(ies)).
So any transfer needs to be done by the nominated transferring bank to comply with the UCP stipulations.
Otherwise, it can be done but with significant risk and it is wide open to complications.
Vincent O'Brien
vob@obrico.com
[edited 4/12/01 10:04:07 PM]
Refer Article 48G. "Unless otherwise stated in the Credit, a transferable Credit can be transferred once only. Consequently, the Credit cannot be transferred at the request of the Second Beneficiary to any subsequent Third Beneficiary"
Remember this can be complicated as under UCP Article 48 A. "A transferable Credit is a Credit under which the Beneficiary (First Beneficiary) may request the bank authorised to pay, incur a deferred payment undertaking, accept or negotiate (the 'Transferring Bank'), or in the case of a freely negotiable Credit, the bank specifically authorised in the Credit as a Transferring Bank, to make the Credit available in whole or in part to one or more other Beneficiary(ies) (Second Beneficiary(ies)).
So any transfer needs to be done by the nominated transferring bank to comply with the UCP stipulations.
Otherwise, it can be done but with significant risk and it is wide open to complications.
Vincent O'Brien
vob@obrico.com
[edited 4/12/01 10:04:07 PM]
Transfer of L/C
THEORETICALLY, as commented by bankers above, a second transfer can be done if this is allowed in the master LC.
Then a lot of interesting questions would follow.
Who (the 1st or 2nd beneficiary) to apply for such transfer? and to whom? (the original transferring bank or a new transferring bank has to be nominated?)
Please don't take everything for granted and try to rely on the existing UCP 500 articles as the ultimate solution for everything, which may not work well.
Even if all these questions have got the right answers from ICC, but IN PRACTICE, would you, as a prudent banker, accept such second transfer? The answer appears to be NO.
Then how about multi-transfers?
I am from www.tolee.com
[edited 5/24/01 4:38:55 PM]
Then a lot of interesting questions would follow.
Who (the 1st or 2nd beneficiary) to apply for such transfer? and to whom? (the original transferring bank or a new transferring bank has to be nominated?)
Please don't take everything for granted and try to rely on the existing UCP 500 articles as the ultimate solution for everything, which may not work well.
Even if all these questions have got the right answers from ICC, but IN PRACTICE, would you, as a prudent banker, accept such second transfer? The answer appears to be NO.
Then how about multi-transfers?
I am from www.tolee.com
[edited 5/24/01 4:38:55 PM]