Article 38 - Transfer
The concept of a transfer under a credit was outlined in the first UCP, publication 82: "A credit can only be transferred on the express authority of the principal. In this case the credit can be transferred once only, and on the terms and conditions specified in the original credit, with the exception of the amount of the credit and of the time of validity, which both may be reduced.
If a Commercial Documentary Credit is transferred by fractions, such fractional transfers shall be considered as constituting one single transfer only.
Authority to transfer a credit covers authority to transfer it to another place. Bank charges entailed by such transfers are payable by the original beneficiary unless otherwise specified. During the validity of the original credit, payment may be made at the place to which the credit has been transferred."
UCP 151, article 49, made a transfer possible, subject to a credit having been issued as ‘transferable' or ‘assignable'. This publication placed transfer and assignment within a single article, and also made mention of the fact that a bank was not bound to effect a transfer except to the extent and in the manner expressly consented to.
UCP 222, article 46, stated that terms such as ‘divisible', ‘fractionable', ‘assignable' and transmissible' added nothing to the meaning of transferable and should not be used.
UCP 500 was the first publication that created extensive rules for transfer (article 48).
Article 39 - Assignment
UCP 290 saw the first set of rules that distinguished between transfer and assignment.
A separate rule, in article 47, reflected assignment of proceeds by stating: "The fact that a credit is not stated to be transferable shall not affect the beneficiary's rights to assign the proceeds of such credit in accordance with the provisions of the applicable law."
It was UCP 500, article 49, that incorporated the text "This Article relates only to the assignment of proceeds and not to the assignment of the right to perform under the Credit itself."