(a) Except as otherwise provided in section 4-5113, unless a letter of credit provides that it is transferable, the right of a beneficiary to draw or otherwise demand performance under a letter of credit may not be transferred.
(b) Even if a letter of credit provides that it is transferable, the issuer may refuse to recognize or carry out a transfer if:
The transfer would violate applicable law; or
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 within the standard practice referred to in section 4-5-108 (e) or is otherwise reasonable under the circumstances.
Source: L. 96: Entire article R&RE, p. 198, § 1, effective July 1.
Editor's note: This section is similar to former § 4-5-116 as it existed prior to 1996.