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B/L: Transfer of the title of the goods passes by mere endorsement on the back of the document.
If B/L is showing as consignee 'to order of shipper', the shipper will transfer the title of the goods 'in favour of issuing bank' by stating 'endorse to order of (name of issuing bank)' + signature of the shipper on the back of the document.
If documents are accepted by issuing bank, the issuing bank will transfer the title of the goods to the beneficiary by endorsing the B/L with their signature.
In fact it has the same function as a bill of lading showing as consignee 'to order of issuing bank'
endorsed in favor of issuing bank means that the shipper will endorse the bill of lading in favor of issuing bank. simple. please note that if the LC calls for bill of lading in favor of shipper and blank endorsed, bill of lading issued to the order of issuing bank should also be acceptable. by the way, i have a question;
endorsed in favor of issuing bank; this is not very clear to me. should it be in negotiable form? or a straight endorsement will work?