Transferable credit means a credit that specifically states it is 'transferable'. A transferable credit may be made available in whole or in part to another beneficiary ('second beneficiary') at the request of the beneficiary ('first beneficiary').
Transferred credit means a credit that has been made available by the transferring bank to a second beneficiary.
Transferring bank means a nominated bank that transfers the credit or, in a credit available with any bank,
a bank that is specifically authorized by the issuing bank to transfer and that transfers the credit. An issuing bank may be a transferring bank.
This transferable Letter of credit is created under an export L/C and made available in whole or in part to another beneficiary(Second Beneficiary). All the conditions of the export L/C (For instance Amount, Unit price, Shipment date, Expiry Date, Presentation instructions etc.) are copied into the according fields of the transferred L/C.
The open amount of the Original L/C is the default value for the nominal amount of the transfer. A transfer is not possible, if the open amount of the export L/C is already (over) utilized.
The amount and date fields like validity and the last shipment date to be checked against the conditions of the export L/C before opening a transfer L/C. There is a possibility to have multiple transfers to several second beneficiaries unless the available total amount under the export L/C is not exceeded.
The reimbursement bank can be entered, if the checkbox 'Reimbursement Information' is checked.
To transfer a transferable L/C under an export L/C to a second beneficiary, LTTOPN transaction is used.
Select it from the menu item[Export Products -> Transfer L/C -> Transfer LC -> Open Transfer L/C].
When you have made your changes, click on the ( ) Save function to save all the the data entered in the transaction to the database.