The
Definition Of

Transferable Credit

Transferable Credit is a documentary credit under which the bank called upon to effect payment or acceptance, or to any bank entitled to effect negotiation, makes the credit available in whole or in part to one or more third parties (second beneficiaries).

Share it:

More from this Section

  • Obligation
    Obligation is the responsibility to perform some act or pay a sum of money when due.
  • Liabilities
    Liabilities are claims against assets-that is, existing debts and obligations. Businesses of all sizes usually borrow money and purchase merchandise on credit. Creditors may legally force...
  • Relationship pricing
    Relationship pricing is the basing fees charged a customer on the number of services and the intensity of use of those services that the customer purchases from a bank.
  • Temporal Method
    Temporal method refers to one of the method of two basic methods for the translation of foreign subsidiary financial statements in which specific assets and liabilities are ...
  • “animal spirits”
    “animal spirits” means Waves of optimism and pessimism that affect consumers’ and businesses’ willingness to spend.
  • Offered (Selling) Rate
    Offered (Selling) Rate is exchange rate at which dealers are prepared to sell foreign exchanges in the market and at which potential buyers are
  • Border tax adjustment
    Border tax adjustment means the fiscal practice, under the General Agreement on Tariffs and Trade, by which imported goods are subject to some or all of ...