Transferable L/C

picant · Post by **picant** » Mon Dec 15, 2008 5:05 pm

Hi Pals,

could you show me a tipical wording of l/C:

a) with substitution,

b) without substitution.

prompt reply appreciated

thanks

Ciao

jmitra · Post by **jmitra** » Mon Dec 15, 2008 7:40 pm

dear picant,

i can tell you my bank's practice; not sure typical or not. in transferable LC we include a extra clause generally

1. transferring bank must inform the issuing bank of any transfer made under this LC giving the following details -
whether the first beneficiary is retaining the right to decide on advice of amendment of this LC to the second beneficiary
whether the first beneficiary is retaining the right to substitute documents for the transferred portion of this LC

unless these details are provided, issuing bank will have the right to inquire with the transferring bank after any presentation made and will not be responsible for any delay in honoring a complying presentation.

sorry, these may not be the actual wording.

Transferable L/C

Transferable L/C

in brief