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There is a fundamental distinction between a Back-to-Back credit and a Transferable Credit which is
as follows:
(1)( ) The former original credit is in the name of original Irrevocable credit and the latter original credit is in the name of original Transferable Irrevocable Credit.
(2)( ) In Back-to-Back credit operation, the original Irrevocable credit and the Back-to-Back credit are two wholly independent credits with wholly independent issuing bank undertakings.
The Transferred credit derives not only its existence from the original Transferable credit, but also its utilization.
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