Alabama § 7-5-112 Transfer of Letter of Credit

Alabama Statutes

§ 7-5-112 — Transfer of Letter of Credit

Alabama·Title 7 Commercial Code·Art. 5 Letters of Credit

(a)Except as otherwise provided in Section 7-5-113, 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:

(1)the transfer would violate applicable law; or

(2)the transferor or transferee has failed to comply with any requirement stated in the letter of credit or any other requirement relating to transfer imposed by the issuer which is within the standard practice referred to in Section 7-5-108(e) or is otherwise reasonable under the circumstances.

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(a) Except as otherwise provided in Section 7-5-113, 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:
(1) the transfer would violate applicable law; or
(2) the transferor or transferee has failed to comply with any requirement stated in the letter of credit or any other requirement relating to transfer imposed by the issuer which is within the standard practice referred to in Section 7-5-108(e) or is otherwise reasonable under the circumstances.

Alabama § 7-5-112 (Transfer of Letter of Credit) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.