Document background
A Letter of Credit Transferable is a crucial financial instrument in international trade, particularly relevant when intermediary traders or distributors are involved in the supply chain. This document, governed by Irish law and regulated under the Central Bank Act 1942 (as amended), allows the original beneficiary to transfer their rights to receive payment to one or more second beneficiaries. It's commonly used when a middleman connects buyers with ultimate suppliers, or when a trading company needs to transfer the credit to actual manufacturers or suppliers. The document must comply with both Irish banking regulations and international standards such as UCP 600, providing security and payment guarantees to all parties involved. It includes specific provisions for transfer mechanisms, document requirements, and payment terms, making it particularly valuable in complex international trade transactions where multiple parties are involved in the supply chain.
