If The LC Does Not Indentify The Transferring Bank

[jim]

members,

UCP60 article 39 says that the transferring bank must be identified in a credit. if a credit does not identify so, who will the transferring bank?

Thank!

Jim

[shahriar]

i think a similar topic was discussed earlier.
there are two possible cases here -

1. the lc is available with a specific bank

2. the lc is available with any bank.

for option one, the nominated bank is the transferring bank.

for option two -

right now my thinking is that the advising bank or the first beneficiary should enquirer with the issuing bank on the issue to avoid future disputes. however, under such scenario, i think issuing bank is the transferring bank.

regd

shahriar

[cristiand969]

The art. 38 (not 39) of UCP 600 clearly states:
a. The nominated bank is the transferring bank
b. In case of a credit available with ANY BANK the bank specifically authorized by the issuing bank.
Therefore if option b. is used and no bank is specified in the credit then pursuant to art 38b, the only transferring bank is the issuing bank.

regards
Cristian