China -  Chinese law firm

How does a transferable letter of credit differ from an assigned letter of credit?

(a): Transferability must be expressly agreed to by the parties, whereas any letter of credit may be assigned. Transferability allows an assignee party to draw from the issuing bank, whereas an assigned letter of credit may only be drawn upon by the assignor; the assignee only has a right to the proceeds, and may not directly enforce payment from the issuing bank.

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