8.5A-112 - A-112. Transfer of letter of credit. - Virginia Statutes

§ 8.5A-112. Transfer of letter of credit.

(a) Except as otherwise provided in § 8.5A-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 is transferable, the issuermay 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 requirementstated in the letter of credit or any other requirement relating to transferimposed by the issuer which is within the standard practice referred to in §8.5A-108(e) or is otherwise reasonable under the circumstances.

(1997, c. 343.)