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Irrevocable Transferable Lc for Philippines

Irrevocable Transferable Lc Template for Philippines

A legally binding financial instrument issued under Philippine banking regulations and UCP 600, which represents an irrevocable undertaking by a bank to pay the beneficiary a specified amount upon presentation of compliant documents. This document is transferable, allowing the first beneficiary to transfer their rights to a second beneficiary, making it particularly useful in international trade transactions where intermediaries are involved. The document operates under Philippine jurisdiction while incorporating international banking practices and UCP 600 rules, providing security and payment assurance for complex international trade transactions.

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Irrevocable Transferable Lc

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What is a Irrevocable Transferable Lc?

The Irrevocable Transferable LC is a sophisticated banking instrument commonly used in international trade finance under Philippine jurisdiction. It provides a secure payment mechanism where a bank irrevocably commits to pay the beneficiary upon presentation of compliant documents, while also allowing the beneficiary to transfer their rights to another party. This document is particularly valuable in transactions involving intermediaries, trading houses, or multiple parties in the supply chain. The transferability feature enables the first beneficiary to transfer all or part of their rights to a second beneficiary, typically a supplier or manufacturer. Operating under Philippine banking regulations and UCP 600, this document type includes detailed specifications about the credit amount, validity period, required documents, and transfer conditions. It's essential for businesses engaged in international trade wanting to mitigate payment risks while maintaining flexibility in their supply chain operations.

What sections should be included in a Irrevocable Transferable Lc?

1. Letter of Credit Number and Date: Unique identification number and issuance date of the LC

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

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

4. Applicant Details: Full name and address of the party requesting the LC

5. Amount and Currency: Maximum credit amount and currency specification

6. Expiry Date and Place: Clear statement of expiry date and location for document presentation

7. Transferability Clause: Explicit statement that the credit is transferable under UCP 600 Article 38

8. Available With/By: Specification of nominated bank and manner of availability (sight, deferred payment, etc.)

9. Partial Shipments/Transhipment: Whether partial shipments or transhipment is allowed or prohibited

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

11. Shipment Terms: Latest shipment date and shipment details requirements

12. Presentation Period: Time period within which documents must be presented after shipment

13. Description of Goods/Services: Detailed description of the underlying goods or services

14. Governing Law and Jurisdiction: Specification of Philippine law and UCP 600 as governing rules

15. Bank Charges: Distribution of banking charges between parties

What sections are optional to include in a Irrevocable Transferable Lc?

1. Additional Conditions: Special conditions or requirements specific to the transaction

2. Second Beneficiary Terms: Specific terms applicable to potential second beneficiaries, used when transfer terms need to be restricted

3. Insurance Requirements: Specific insurance requirements beyond standard coverage, used when special insurance is needed

4. Special Payment Conditions: Additional payment terms or conditions, used for complex payment arrangements

5. Document Preparation Instructions: Specific instructions for document preparation, used when special document handling is required

6. Force Majeure Provisions: Specific provisions for force majeure events, used in high-risk transactions

7. Confirmation Instructions: Terms for confirmation by another bank, used when confirmation is requested

8. Reimbursement Instructions: Specific reimbursement arrangements, used for complex reimbursement structures

What schedules should be included in a Irrevocable Transferable Lc?

1. Schedule A - Document Requirements: Detailed checklist of required documents and their specific requirements

2. Schedule B - Goods Specification: Detailed technical specifications of goods or services covered

3. Schedule C - Banking Instructions: Detailed banking procedures and instructions for all parties

4. Schedule D - Transfer Terms: Specific terms and conditions governing the transfer of the credit

5. Appendix 1 - Sample Documents: Templates or samples of required documents

6. Appendix 2 - Bank Contact Details: Complete contact information for all banks involved

7. Appendix 3 - Shipping Terms: Detailed shipping requirements and instructions

8. Appendix 4 - Fee Schedule: Detailed breakdown of all applicable banking fees and charges

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Philippines

Publisher

Ƶ

Document Type

Letter of Credit

Cost

Free to use
Relevant legal definitions









































Clauses






























Relevant Industries

Banking and Financial Services

International Trade

Import/Export

Manufacturing

Retail

Commodities Trading

Agriculture

Mining

Construction

Textiles

Electronics

Oil and Gas

Shipping and Logistics

Consumer Goods

Relevant Teams

Legal

Finance

International Trade

Treasury

Risk Management

Compliance

Trade Operations

Banking Operations

Supply Chain

Credit Administration

Document Processing

Client Relations

Relevant Roles

Trade Finance Manager

International Trade Specialist

Documentary Credits Officer

Import/Export Manager

Treasury Manager

Finance Director

Commercial Banking Officer

Trade Operations Manager

Credit Risk Officer

Compliance Officer

Banking Relationship Manager

Supply Chain Manager

Chief Financial Officer

International Business Development Manager

Legal Counsel

Documentary Collections Specialist

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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