Field 40A states IRREVOCABLE And 47A Mentions A Transferring Bank

[sandeep_mt]

HI
1)Field 40A states IRREVOCABLE where as under field 47A its mentioned as Bank A is authorised to transfer the lc and lc is issued available with bank A.
Please confirm can the lc be transferred in above circumstances where filed 40A states Irrevocable instead of Irrevocable Transferable.

2)In order to transfer the lc the expiry place of the transfer lc will be of whose country Issuing bank/Transferring bank/Second beneficiary bank.Can the same be amended while transferring the lc.

[gondem]

According to UCP rule the credit cannot be transfered unless it is explicitly titled as 'transferable'. So only mentioning irrevocable is not sufficient. The expiry place should be the country of the transferring bank.

[picant]

HI Pal,

Art 38 b states that :transferable credit means a credit that specifically states that is "transferable".
Now it is a problem of interpretation so the first thing to do is contacting the issuing bank for clarification, para. j is quite clear, the transferring bank must evaluated the possible risk in changing the place of expiry.

Other comments appreciated

Ciao

[sandeep_mt]

Sir
Can you please elaborate regarding the risk involved changing the place of expiry in case of transfer lc.

[picant]

Hi Pal,

first of all the loss of documents.... others will depend on the wording