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Name : Bala Krishnan
Subject: About Letter of Credit
Message : 1. Back to back LCs are recognised under UCP 500. The only problem with B2BLCs is that co-ordinating two LCs to cover both the purchase and resale of the same goods is complicated. Also, the issuer of the Slave LC will likely insist that it be a Confirming Bank under the First, so that it will have the right to receive, and to accept or reject amendments in its discretion.

2. Transferable LCs are a much better deal and are ideally suited for middlemen who would like to protect their cost-prices.

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