Letter Of Credit Transferable for Hong Kong

Letter Of Credit Transferable Template for Hong Kong

A transferable letter of credit document governed by Hong Kong law represents a specialized banking instrument that enables the original beneficiary to transfer all or part of their rights under the credit to a second beneficiary. This document, typically issued by banks in Hong Kong's major financial center, follows both local banking regulations and international UCP 600 rules. It details the terms of transfer, including documentary requirements, financial conditions, and the rights and obligations of all parties involved, while incorporating specific provisions required under Hong Kong's banking and commercial law framework.

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What is a Letter Of Credit Transferable?

A Letter of Credit Transferable is a specialized form of documentary credit that allows the first beneficiary (typically a trading company or intermediary) to transfer their rights under the credit to one or more second beneficiaries (usually suppliers or manufacturers). This document is particularly crucial in Hong Kong's bustling international trade environment, where it facilitates complex trade transactions and supply chain financing. The transferable letter of credit must comply with both Hong Kong banking regulations and international UCP 600 rules, providing security and payment assurance to all parties involved. It includes detailed specifications about the transfer terms, document requirements, banking charges, and any modifications from the original credit. This instrument is commonly used when intermediaries don't have sufficient funds to pay suppliers or when they wish to maintain confidentiality about their profit margins in the transaction.

What sections should be included in a Letter Of Credit Transferable?

1. Letter Header: Bank letterhead, reference numbers, date, and urgent/priority markings

2. Addressee Details: Full details of the first beneficiary requesting the transfer

3. Original Credit Reference: Details of the original letter of credit including number, issuing bank, and amount

4. Transfer Declaration: Clear statement of the bank's agreement to transfer the credit

5. Second Beneficiary Details: Complete information about the party to whom the credit is being transferred

6. Transfer Terms: Specific terms of the transfer including amount, unit prices, expiry dates, and shipment periods

7. Document Requirements: Listing of required documents and any modifications from original credit

8. Bank Charges: Statement of all applicable bank charges and who bears them

9. Governing Law: Specification of Hong Kong law as governing law

10. Authorization: Bank's authorized signatures and any authentication codes

What sections are optional to include in a Letter Of Credit Transferable?

1. Partial Transfers: Include when the credit allows for transfer to multiple second beneficiaries

2. Special Instructions: Include when there are specific requirements for document preparation or presentation

3. Substitution Rights: Include when first beneficiary retains right to substitute own invoices and drafts

4. Transfer Restrictions: Include when there are specific restrictions on further transfer

5. Electronic Presentation Terms: Include when documents can be presented electronically

6. Confirmation Details: Include when the transfer includes confirmation from another bank

What schedules should be included in a Letter Of Credit Transferable?

1. Schedule A - Original Credit Terms: Complete copy or summary of the original letter of credit terms

2. Schedule B - Transfer Application Form: Completed application form submitted by first beneficiary

3. Schedule C - Document Requirements Checklist: Detailed checklist of all required documents and their specifications

4. Appendix 1 - Fee Schedule: Detailed breakdown of all applicable bank charges and fees

5. Appendix 2 - Specimen Signatures: Where required, specimen signatures of authorized parties

6. Appendix 3 - Document Preparation Instructions: Detailed instructions for preparation of commercial documents

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Hong Kong

Publisher

Genie AI

Document Type

Letter of Authority

Sector

Banking

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Banking

International Trade

Import/Export

Manufacturing

Wholesale Trade

Commodities Trading

Shipping and Logistics

Financial Services

Agricultural Trade

Textile Industry

Relevant Teams

Trade Finance

International Banking

Documentary Credits

Compliance

Risk Management

Treasury Operations

Client Relations

Trade Operations

Credit Administration

Legal Affairs

Relevant Roles

Trade Finance Manager

Documentary Credits Specialist

International Banking Officer

Compliance Officer

Letter of Credit Manager

Trade Operations Manager

Import/Export Manager

Banking Relationship Manager

Treasury Manager

Trade Finance Analyst

Documentary Collections Officer

Credit Risk Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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