First beneficiary - also known as the transferor, the first beneficiary is often the intermediary party or middleman in a trade transaction. They are the beneficiary of the original DC and will transfer the DC on to the ultimate supplier.
Second beneficiary - also known as the transferee, the second beneficiary is the supplier. There can be several second beneficiaries as the middleman can divide the credits and transfer to various parties provided partial shipment is allowed.
Transferring bank - the bank that transfers the DC for the first beneficiary. A bank has to be specifically authorised in the DC to be a transferring bank.
Full transfer - sometimes known as transfer in its entirety, which means that the whole DC amount is transferred to a single second beneficiary.
Partial transfer - in this case only part of the DC value is available to the second beneficiary (or beneficiaries).
Example Sam's Store buys widgets from Joe's Trading. Joe doesn't make the widgets himself but buys them from Happy Widget Factory. The payment for this business transaction is by way of a Transferable Documentary Credit (DC) for HKD100,000 issued for Sam's Store to Joe's Trading (first beneficiary/transferor). Joe then asks HSBC (transferring bank) to transfer the DC to Happy Widget Factory (second beneficiary/transferee) for the amount of HKD70,000 (partial transfer) and keeps the balance of HKD30,000 to cover his expenses and profit.