ICC Digital Library Forum

Pls give your coomments for the following case:
- The issuing bank issued an transferable L/C subject to UCP600 in favor of the beneficiary (A)
- The first beneficiary (A) would like to transfer 100% to a second beneficiary (B) and no substitution to occur
- According to Art.38k, presentation of documents by or on behalf of the second beneficiary must be made to the transferring bank.
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Our questions in this case are:
1. Can the transferring bank state on the transferred L/C that the documents may be sent directly to the issuing bank?
2. Is it possible for the second beneficiary (B) retransfer the L/C to a third beneficiary (C) due to import regulations?

Everything is possible if the issuing bank is consulted and agrees about a transfer to a third beneficiary and that the documents are presented directly to it.
Daniel

ICC unpublished opinion Document 470/TA.632rev (UCP600) provides the answer to question #1. The opinion indicated that the transferring bank might do so if so requested by the first beneficiary.

Regards
Jack Chan