1 A credit may only be transferred by the bank authorized to pay, incur a deferred payment undertaking, accept or negotiate; if the credit is freely negotiable it can only be transferred by the bank specifically authorized to do so.

Note: an exporter requesting his buyer to provide him with a transferable credit must understand that it may be advised through a bank which is unwilling to transfer it. If he elicits from his own bank in advance that it would be prepared to effect the transfer, he can ask his buyer to name it in the credit application as the preferred advising bank. It is worth a try and if successful can save the beneficiary a lot of time.