Document background
The Non-Transferable Letter of Credit is a crucial trade finance instrument used when parties require a secure payment method but want to restrict the beneficiary's ability to transfer drawing rights. Under Singapore law, this document type provides certainty in international trade transactions by combining the security of a bank's payment undertaking with the restriction that only the named beneficiary can draw under the credit. The LC Non Transferable format is particularly relevant when the applicant wants to ensure that only the specific beneficiary they have chosen can receive payment, preventing any unauthorized transfer of rights or obligations.
