Transferable Credits

ZErsamut · Post by **ZErsamut** » Tue May 24, 2011 1:00 am

Hello;

Under a transferable L/C the applicant requests us to insert the b/m clause:

"The transferring bank has the right to amend certain clauses to facilitate compliant submission of documents called for under this credit."

Could you please provide me with your comments regarding this clause.

Regards.

DLloyd1 · Post by **DLloyd1** » Tue May 24, 2011 1:00 am

UCP allows for certain clauses to be changed when transferring the LC. They could simply be referring to that. On the other hand, they could be trying to defraud the transferring (confirming?) bank.

I suggest you ask them exactly which clauses will be changed. If they are simply following instructions from the 1st beneficiary then this should ring alarm bells with you.

NigelHolt · Post by **NigelHolt** » Wed May 25, 2011 1:00 am

I would refuse the applicant's request as the condition is far too broad. Furthermore, one should not anyway issue a credit that should require any 'surgery' at the transfer stage in order to enable the second beneficiary to make a complying presentation.