Document background
The Transferable LC is a sophisticated financial instrument used in international trade transactions where an intermediary party (typically a trader) needs to transfer their rights under a letter of credit to another party (usually the actual supplier of goods). This document, governed by Austrian law, enables such transfers while maintaining the security and certainty that letters of credit provide. It includes essential information such as the transfer conditions, documentation requirements, and rights and obligations of all parties involved. The document must comply with Austrian banking regulations, EU financial services laws, and international banking practices (particularly UCP 600). It's commonly used in back-to-back trading arrangements, commodity trading, and complex supply chain transactions where multiple parties are involved in the trade cycle.
