§490:5-112 Transfer of letter of credit. (a) Except as otherwise provided in section 490:5-113, unless a letter of credit provides that it is transferable, the right of a beneficiary to draw or otherwise demand performance under a letter of credit may not be transferred.
(b) Even if a letter of credit provides that it is transferable, the issuer may refuse to recognize or carry out a transfer if:
(1) The transfer would violate applicable law; or
(2) The transferor or transferee has failed to comply with any requirement stated in the letter of credit or any other requirement relating to transfer imposed by the issuer which is within the standard practice referred to in section 490:5-108(e) or is otherwise reasonable under the circumstances. [L 1996, c 39, pt of §1]
Section: Previous 490-5-105 490-5-106 490-5-107 490-5-108 490-5-109 490-5-110 490-5-111 490-5-112 490-5-113 490-5-114 490-5-115 490-5-116 490-5-117 490-5-118 490-6-101-to-490-6-110 NextLast modified: October 27, 2016