70A-5-112 - Transfer of letter of credit. - Utah Statutes

70A-5-112. Transfer of letter of credit.
(1) Except as otherwise provided in Section 70A-5-113, unless a letter of credit providesthat it is transferable, the right of a beneficiary to draw or otherwise demand performance under aletter of credit may not be transferred.
(2) Even if a letter of credit provides that it is transferable, the issuer may refuse torecognize or carry out a transfer if:
(a) the transfer would violate applicable law; or
(b) the transferor or transferee has failed to comply with any requirement stated in theletter of credit or any other requirement relating to transfer imposed by the issuer which is withinthe standard practice referred to in Subsection 70A-5-108(5) or is otherwise reasonable under thecircumstances.

Repealed and Re-enacted by Chapter 241, 1997 General Session