Commodidex

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====== Transferable Credits ======

A transferable documentary credit must expressly state that it is transferable and provide the name of the nominated bank or the bank authorised to transfer.[(:ref:baft-tfg-lc)]

The <wrap hi>first beneficiary can request transfer to multiple second beneficiaries, provided the documentary credit allows for partial shipments</wrap>. However, <wrap hi>the second beneficiary cannot transfer the documentary credit to another subsequent beneficiary</wrap>.[(:ref:baft-tfg-lc)]

<wrap hi>Under UCP 600, the transfer must be effected on the existing terms and conditions except for the amount, the unit price if given, the expiry date, and the latest date of shipment or period for presentation</wrap>, all of which can be reduced. Furthermore, the name of the first beneficiary can be substituted with the applicant's.[(:ref:baft-tfg-lc)]

If the documentary credit
requires the presentation of
an insurance document, the
amount or the percentage
of insurance can be increased
to provide cover as initially
required under the
documentary credit.[(:ref:baft-tfg-lc)]

The first beneficiary has the right to provide its invoice in substitution of the second beneficiary’s invoice and draw for the difference in amount, if any. However, if it fails to provide its invoice, the transferring bank can forward documents received from the second beneficiary to the issuing bank.[(:ref:baft-tfg-lc)]