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Check 1
Does “non-transferable” automatically mean “cannot be financed”?
Transferable Documentary Credit
Understand what “transferable” actually permits.
Express requirement
A documentary credit is transferable only if it expressly states that it is transferable under the applicable rules.
First and second beneficiary
A first beneficiary may request transfer to a second beneficiary through a bank that agrees to act as transferring bank.
Permitted changes
The transferred credit can change only specified elements allowed by the applicable rules; it is not a free rewrite of the original credit.
Financing distinction
A non-transferable LC may still support assignment of proceeds or financing. Transferability and financeability are different.
Source / standards noteThis lesson uses original plain-English explanations. Read the credit, UCP 600 and current bank practice for a live transaction.
Remember thisTransferability is a specific right under the credit; it is not the same as assignment of proceeds or financing.
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