11.7.3　Transferable Letter of Credit可转让信用证

This type of credit is preferred by trading companies.If you are a trading company and procure goods from a manufacturer(your supplier),but cannot afford to buy outright and await payment from the importer,you can request a specific type of credit be opened in your favor which authorizes the advising bank to accept your instructions to transfer the credit amount in whole,or in part,to a third party—the manufacturer.This type of credit is called a transferable credit.It simplifies the transaction by avoiding the opening of two or more credits.Under this type of credit,you are the first beneficiary and the manufacturer or manufacturers the second beneficiary.However,no credit is transferable unless expressly indicated in the credit and notably,a transferable credit can be transferred only once—the second beneficiary cannot transfer it to any subsequent beneficiaries.The transferred credit must accurately reflect the terms and conditions of the original credit,including confirmation,if any,with the exception of:the amount of the credit,any unit price stated therein,the expiry date,the period for presentation,or the latest date of shipment or given period for shipment,any or all of which may be reduced or curtailed.