57A-5-112 Transfer of letter of credit.
Transfer of letter of credit.
(a) Except as otherwise provided in § 57A-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:
The transfer would violate applicable law; or
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 § 57A-5-108(e) or is otherwise reasonable under
SL 1998, ch 283, § 1.