Uncategorized LC IS TRANSFERABLE By Mr Old Man Posted on October 30, 2013 1 min read 2 0 5,696 Share on Facebook Share on Twitter Share on Google+ Share on Reddit Share on Pinterest Share on Linkedin Share on Tumblr Shahed – Canada Posted 22 Oct 13 Credit only states 'This Credit (LC) is transferable by the Beneficiary"Do you think this clause is acceptable ? (Note that there is no nominated transferring bank in this clause nor it states the beneficiary would request the Issuer to transfer the Credit. It looks like the beneficiary can transfer the Credit to the second beneficiary by its own without referring to the Issuer).————————— Mr. Old Man Posted 25 Oct 13 Hi, The sentence “This credit is transferrable by the beneficiary” implies that the first beneficiary is allowed to have the credit transferred (by the transferring bank) to the second beneficiary.If the credit is available with a named nominated bank then that nominated bank may act as the transferring bank. If the credit is available with any bank then it needs to nominate a named transferring bank. The beneficiary cannot act as a transferring bank. Regards,N.H.Duc
IS THE NOMINATED BANK REQUIRED TO VERIFY WHETHER THE BENEFICIARY HAS AUTHORIZED THE PRESENTING BANK TO PRESENT THE DOCUMENTS?
CAN THE ISUING BANK CITE “LATE PRESENTATION” AS A DISCREPANCY SOLELY BASED ON THE DATE OF THE COVER LETTER?
IS THE NOMINATED BANK REQUIRED TO VERIFY WHETHER THE BENEFICIARY HAS AUTHORIZED THE PRESENTING BANK TO PRESENT THE DOCUMENTS?
CAN THE ISUING BANK CITE “LATE PRESENTATION” AS A DISCREPANCY SOLELY BASED ON THE DATE OF THE COVER LETTER?