Definition

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:  Cite

More from this Section

  • Usance Draft
    Usance Draft is term draft, a written demand for payment which comes due at a specified ...
  • McCarran-Ferguson Act
    McCarran-Ferguson Act is a federal law passed in 1945 stating that continued regulation ...
  • Matched sale-purchase transaction
    Matched sale-purchase transaction is an arrangement whereby the Fed sells securities and ...
  • Arm’s-length price
    Arm’s-length price refers to the price at which a willing buyer and a willing unrelated ...
  • Forward Cover
    Forward Cover is forward purchase or sale of foreign currency to offset an anticipated ...