transferable letter of credit

Definition

A letter of credit used by export brokers in which the rights and obligations of the beneficiary (the broker) may be transferred, in full or in part, to a third party for purposes of gaining access to a buyer's line of credit to be used for payment to a manufacturer. The issuing bank may only transfer the letter of credit with the approval of the beneficiary and it may only be transferred once to a secondary beneficiary.

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transferable transferable option