UCP 600 Article 38b - Transferable Credits

[ridvandemir]

Hello Everyone,

I would like to ask you a general question. What's the interpretation of "An issuing bank may be a transferring bank." part in the Article 38b of UCP 600? I have read it several times but I couldn't understand.

[picant]

issuing bank if the l/c is available with itsself may be the transferring bank too. It means that issuing bank will have full control of the l/c.
Other comments appreciated
Ciao

[Navi]

Hi Friend,

If the LC is available with issuing bank, the beneficiary of the LC may request directly from issuing bank to transfer the LC to a second beneficiary. It is not a common practice but it may occur generally if the beneficiary and issuing bank are located in the same country.
regards

[shafi865]

Though it is not common scenario, but it is possible to occur transfer by the issuing bank. If the Applicant and first Beneficiary both have the same bank, then it may may be occured.