400.5-112. Transfer of letter of credit. - Missouri Statutes

Transfer of letter of credit.

400.5-112. (a) Except as otherwise provided in section 400.5-113,unless a letter of credit provides that it is transferable, the right of abeneficiary to draw or otherwise demand performance under a letter ofcredit may not be transferred.

(b) Even if a letter of credit provides that it is transferable, theissuer 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 anyrequirement stated in the letter of credit or any other requirementrelating to transfer imposed by the issuer which is within the standardpractice referred to in section 400.5-108(e) or is otherwise reasonableunder the circumstances.

(L. 1963 p. 503 § 5-112, A.L. 1997 S.B. 6)

*No continuity with § 400.5-112 as repealed by L. 1997 S.B. 6 § A.