Meaning Of "The First Beneficiary Is Not Considered To Be A Subsequent Beneficiary."

[shafi865]

Dear All,

According to UCP 600 sub-article 38d) ''A transferred credit cannot be transferred at the request of a second beneficiary to any subsequent beneficiary. The first beneficiary is not considered to be a subsequent beneficiary.''

Please clear me the second sentence "The first beneficiary is not considered to be a subsequent beneficiary." Does it means that second beneficiary is able to transfer the 'Transferred LC' to the first beneficiary ?

Regards,
Shafique

[dinesh2476]

Hi Shafique,

I think the below clause talks about re-transfer of credit. If the transferree is not ready to act under transferred credit. it may be inform transferring bank about the same. un-acted portion of the transferree now be advised to second new beneficiary upon request of the first beneficiary and willingness of the transferring bank to do so.

Thanks & Regards
Dinesh Kumar

[picant]

Hi Pal,

I have this experience, we issue a l/c for interesting amount, we ask the transferring bank to
indicate the various transfers, we noted three different sub l/c, i.e. LC A for XXX to A, LC B
for XXX to B, LC C for XXX to C, covering the full supply. After few weeks B renonced and re transfer
its XXX to the transferring bank, so reinstalting the amount for a new second beneficiary.
This action illustrated to me, the wording of suct UCP article.
Other comments appreciated
Ciao