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      Question

      A ___________ is a type of letter of credit which

      authorises the Advising Bank, to transfer the credit available to one or more other beneficiaries at the request of the original b eneficiary?  
      A Anticipatory LC Correct Answer Incorrect Answer
      B Revolving LC Correct Answer Incorrect Answer
      C Back to back credit Correct Answer Incorrect Answer
      D Transferable LC Correct Answer Incorrect Answer
      E Revocable LC Correct Answer Incorrect Answer

      Solution

      A transferable credit is one that  can  be  transferred  by  the  original (first)  beneficiary  to  one  or  more  second  beneficiaries. Unless specifically stated an LC is not transferable i.e. the  LC  is  deemed  to  be  transferable  only  if  it  is  stated  to  be ‘Transferable’  in  the  LC. Second beneficiary has no right to transfer to third beneficiary 

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