Payment Q&A PAYMENT CLAUSE IN TRANSFERRED LETTERS OF CREDIT By Mr Old Man Posted on September 11, 2017 1 min read 0 0 2,477 Share on Facebook Share on Twitter Share on Google+ Share on Reddit Share on Pinterest Share on Linkedin Share on Tumblr PAYMENT CLAUSE IN TRANSFERRED LETTERS OF CREDIT QUESTION Dear all, Is the payment clause that we shall pay only when we receive funds from issuing bank under original L/C, usual in transferred letters of credit and the banks are always using such structure of payment clause when transferring L/C or is it something which some banks are using but it is not proper? Thanks Snježana ———- ANSWER Hi, Unless the transferring bank is the confirming bank, the transferred L/C would contain the following clause or a clause of similar effect: “We shall pay only when we receive funds from the issuing bank under the original L/C”. Kind regards, N.H. Duc P/s: The Q&A is quoted from DCPro Discussion Forum of 28-29 November, 2016