A transferable LC for USD 200,000 was transferred by M in tavor of X for USD 85,000 and in favor of Y for USD 85,000. Subsequently an amendment calling for inspection certifi was not acceptable to Y. He or she decided to transfer his or her portion to Z. This was not allowed by transferring bank. Hence he or she decided to retransfer it back to original cate was received. X accepted the amendment. Amendment was not acceptable to Y. He or she decided to transfer his or her portion to Z. This was not allowed by transferring bank. Hence he or she decided to retransfer it back to original beneficiary.

1. Can Y transfer his or her portion to Z?

2. Can Y transfer his or her portion to M?

3. Whether the rejection of amendment is binding on X?

4. Who would bear the cost of transfer?

5. In the above LC if the term "divisible" is mentioned and the negotiating bank refuses the transfer of the credit then which bank is at fault?

6. If the documents presented by M are not com plied on first presentation while the documents presented by X are complied, then bank would not pay either of the parties involve. Is it correct?

7. In case of transferable LC what is the risk borne by the importer?

8. Back-to-back and transferable LC-which one is considered as more risky?

9. In the above example while making the transfer does issuing bank need to nominate the transfer ring bank?

10. How a transferred LC is different from the transferable LC?