A Letter of Credit that allows the Beneficiary (Exporter) to instruct its bank to transfer the credit in part or in whole to a Secondary Beneficiary.

Type of letter of credit that names a middleman as beneficiary and allows him to give another party, the actual supplier, certain rights to present documents and receive payment under the letter of credit. Transfer must be effected by a bank authorized to do so by the issuing bank and involves notifying the transferee (called the "second beneficiary") of what documents he must present. The documents must be the same as those required in the letter of credit itself but the price of the goods may be reduced and the middleman's name may be required to be listed in the transferee's invoices as the buyer, thereby allowing the middleman to substitute invoices at a higher price and receive the difference without disclosing the name of the actual end-buyer. The transferring bank is not obligated to pay documents presented under the transfer¾ such obligation remains with the issuing bank.

shipping) A letter of credit where the beneficiary specified in the credit has the option of instructing his bank to transfer the credit fully or in part to another beneficiary.

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