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This module discusses transferable letters of credit, explaining their function and common inquiries regarding their transfer. A standard letter of credit involves two parties: the issuing bank and the beneficiary, who is the only one permitted to present claims under this credit. The example of Rax PLC, a Singapore trading business that supplies garments globally without owning manufacturing facilities, illustrates the process. Rax PLC engages over 100 manufacturers who require confirmation of orders through transferable letters of credit. However, these suppliers cannot present documents under the LCs issued to Rax, as Rax holds the beneficiary status.