Transferable Letter of Credit
A transferable letter of credit is issued by a financial institution, like a bank. It is a letter of credit which is transferable if the conditions are met, such as the applicant of the credit letter (buyer) is agreeable to transfer the rights and obligations of the beneficiary to a third party, like a wholesaler or manufacturer. A transfer can be executed partially or entirely. It is based on the understanding between both the parties.
It’s an entirely formal letter, so keep the tone formal. Use language which is easy to understand and keep the letter brief and to the point. Make sure there are no spelling or grammatical errors in the letter. Include all the details of the credit transfer and particulars of the agreement in the letter, as it can serve as a record for future. Include a token of thanks at the end of the letter.
Ortiz World Bank
4421 Forest Drive
Alexandria, VA 22310
Date of Issue: DD/MM/YYYY
Our Irrevocable, Transferable Letter of Credit: C0309202
Date of Expiry: DD/MM/YYYY
Faber Engineering Consultants
2547 Kinney Street
Holyoke, MA 01040
1642 Randolph Street
Franklin, MA 02038
This is concerning the request of our customer, Plastic Manufacturers, that we the assigned financial authority, Nationwide Bank, Grand Rapids branch, at this moment establish a transferable letter of credit (C0309202) of amount thirty thousand dollars ($30,000). Through this letter, we give in writing the transfer of credit.
This letter of credit is authorized to allow the said amount to be transferable to our third party client either partially or in full when our client fulfills the terms and conditions for the agreed project. We give them full permission to use this credit through our letter.
You will agree to deliver us the above-stated amount at the above-listed address as a written demand by the agreement made between both parties. Credit should be delivered in time as mentioned in the agreement. Kindly avoid any delay.
The drawings herewith need to be presented to Nationwide Bank, Grand Rapids branch, on or before the expiry date as stated above. We shall not be held liable if you lose this letter.
Kindly keep it safely. Thank you for your time and cooperation.
4216 Wetzel Lane
Grand Rapids, MI 49508