12A:5-112 Transfer of letter of credit.
12A:5-112. Transfer of Letter of Credit.
a.Except as otherwise provided in 12A: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 subsection e. of 12A:5-108 or is otherwise reasonable under the circumstances.
L.1997,c.395,s.1.
Section: Previous 12a-5-105 12a-5-106 12a-5-107 12a-5-108 12a-5-109 12a-5-110 12a-5-111 12a-5-112 12a-5-113 12a-5-114 12a-5-115 12a-5-116 12a-5-117 12a-5-118 12a-7-101 Next
Last modified: October 11, 2016