transferable LC available by payment

[jmitra]

im interested in drafting a transferable letter of credit available by payment. could some one please advice me how the reimbursement clause should be designed. it appears simple but im worried about the transferring bank's position. for what value should the claim. what will happen if the document of the 2nd beneficiary is wrong? should the transferring bank take up the issue with the 2nd beneficiary's bank or the issuing bank etc.

[shahriar]

in my opnion there is no reason to design a special reimbursement clause. the issuing bank's account will be debited more than one time. thats all.