§ 25-5-112. Transfer of letter of credit. - North Carolina Statutes

§25‑5‑112.  Transfer of letter of credit.

(a)        Except as otherwiseprovided in G.S. 25‑5‑113, unless a letter of credit provides thatit is transferable, the right of a beneficiary to draw or otherwise demandperformance under a letter of credit may not be transferred.

(b)        Even if a letter ofcredit provides that it is transferable, the issuer may refuse to recognize orcarry out a transfer if:

(1)        The transfer wouldviolate applicable law; or

(2)        The transferor ortransferee has failed to comply with any requirement stated in the letter ofcredit or any other requirement relating to transfer imposed by the issuerwhich is within the standard practice referred to in G.S. 25‑5‑108(e)or is otherwise reasonable under the circumstances. (1999‑73, s. 1.)