§ 6A-5-112 - Transfer of letter of credit. - Rhode Island Statutes

SECTION 6A-5-112

   § 6A-5-112  Transfer of letter of credit.– (a) Except as otherwise provided in § 6A-5-113, unless a letter of creditprovides that it is transferable, the right of a beneficiary to draw orotherwise demand performance under a letter of credit may not be transferred.

   (b) Even if a letter of credit provides that it istransferable, 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 withany requirement stated in the letter of credit or any other requirementrelating to transfer imposed by the issuer which is within the standardpractice referred to in § 6A-5-108(e) or is otherwise reasonable under thecircumstances.