The Irrevocable Transferable LC is a crucial financial instrument in international trade transactions governed by South African law and international banking practices. It is typically used when the first beneficiary acts as a middleman or does not directly supply the goods, allowing them to transfer their rights to another party (second beneficiary). The document provides payment security to sellers while offering flexibility in complex trade structures. It contains specific terms regarding document presentation, payment conditions, and transfer mechanisms. The irrevocable nature means it cannot be amended or cancelled without agreement from all parties, while its transferability enables the first beneficiary to transfer drawing rights to other parties, making it particularly useful in multi-party trade transactions.

1. Letter Details and Reference: LC number, date of issuance, and form of transmission

2. Issuing Bank Details: Complete name and address of the issuing bank

3. Beneficiary Details: Full name and address of the beneficiary

4. Applicant Details: Full name and address of the applicant (buyer)

5. Credit Amount and Currency: Specification of the maximum amount and currency of the LC

6. Type and Form: Clear statement that this is an irrevocable and transferable letter of credit

7. Expiry Details: Expiry date and place for presentation of documents

8. Transfer Terms: Specific conditions and procedures for transfer of the credit

9. Required Documents: Detailed list of all required documents for presentation

10. Shipment Terms: Details of shipment, latest shipment date, and partial shipments/transshipment permissions

11. Payment Terms: Payment conditions, timing, and method of payment

12. Special Conditions: Any additional terms, conditions, or instructions

13. Governing Law: Statement that the LC is subject to UCP 600 and South African law

14. Authentication: Bank authorized signatures and authentication details