What Is The Meaning Of Fractionable LC

[hachem]

Dear expert

The Uniforms Rules For Documentary credits did not define the meaning of a Fractionable letter of credit.

Someone has an idea about the meaning of the word Fractionable

regards
Hachem

[abrar]

Before the UCP600 implementation, UCP500 (sub-article 48 b) categorically emphasised that " a credit can be transferred only if its expressly designated as "transferable" by the issuing bank. terms such as "divisible", "fractionable", "assignable", and "transmissible" do not render tthe Credit transferable. If such terms are used they shall be disregarded".

UCP600 (sub-art. 38 b) has removed reference to these terms and now simply states that "Transferable credit means a credit that specifically states it is "transferable"", meaning that any other words attempting to indicate that the LC is transferable will be disregarded.

So, to answe your question the word" fractionable" has no meaning under UCP600 and if it appears in an LC, will be disregarded.

[hachem]

Before the UCP600 implementation, UCP500 (sub-article 48 b) categorically emphasised that " a credit can be transferred only if its expressly designated as "transferable" by the issuing bank. terms such as "divisible", "fractionable", "assignable", and "transmissible" do not render tthe Credit transferable. If such terms are used they shall be disregarded".

UCP600 (sub-art. 38 b) has removed reference to these terms and now simply states that "Transferable credit means a credit that specifically states it is "transferable"", meaning that any other words attempting to indicate that the LC is transferable will be disregarded.

So, to answe your question the word" fractionable" has no meaning under UCP600 and if it appears in an LC, will be disregarded.

Thank you Abrar

The french version of the UCP500 stipulates the following:

Sub article 48(b): Un crédit peut être transféré que s'il est expressément qualifié de ''transférable'' par la banque émettrice. Des termes tels que ''divisible'','' franctionabe'', ''assignable'' ou ''transmissible'' ne rendent pas le crédit transférable. Si tel tels termes sont emplyés, il n'en sera pas tenu en compte

To recap the sub article 48(b) of UCP500 stitulate that if the term Franctionable is used it shall be disregarded.

But I have found that the sub article 1.10 (c)(i) of International Standby Practice (ISP 98) stipulates the following:

The following terms have no single accepted meaning and shall be disregarded : ''Callable'', ''Divisible'', '' Fractionable'' and '' Transmissible''

.

Can we use this rule of the ISP 98 in order to conclude a rule to be used in a documentary credit

[abrar]

This would work just as well and expresses the same principle