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

  • Weather option
    Weather option provides a payment if a specified weather contingency (e.g., temperatures ...
  • Shared services
    Shared services— charges to compensate the parent for costs incurred in the general ...
  • Foreign Exchange Transactions
    A foreign exchange transaction is an agreement between a buyer and seller that a fixed ...
  • Statutory Audit
    Statutory Audit by law, certain companies need to have their accounts audited by suitably ...
  • Cash Reserve Ratio (CRR)
    Cash reserve ratio denotes the reserve which every banking company should maintain a specified ...