Document background
The Irrevocable Transferable LC is a crucial document in international trade finance, particularly under Austrian jurisdiction, which combines local banking regulations with EU directives and international standards. This instrument is typically used when the first beneficiary acts as a middleman and needs to transfer all or part of the credit to a second beneficiary (usually the actual supplier of goods). The document contains detailed specifications about payment conditions, required documentation, shipping terms, and transfer mechanisms. Its irrevocable nature means that once issued, it cannot be amended or cancelled without the agreement of all parties involved. Austrian law provides a sophisticated legal framework for such instruments, incorporating both UCP 600 rules and European banking regulations, making it particularly suitable for complex international trade transactions involving multiple parties.
