N.Y. Uniform Commercial Code 5-112 – Transfer of letter of credit
Section 5–112. Transfer of letter of credit.
Terms Used In N.Y. Uniform Commercial Code 5-112
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
(a) Except as otherwise provided in section 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 section 5–108 or is otherwise reasonable under the
circumstances.