1. The Laws of New York
  2. Consolidated Laws
  3. Uniform Commercial Code
  4. Article 5: Letters of Credit


Section 5-112 Transfer of letter of credit

Uniform Commercial Code (UCC)

Section 5--112. Transfer of letter of credit.

  (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.