Arkansas § 4-5-112 Transfer of letter of credit

Arkansas Statutes

§ 4-5-112 — Transfer of letter of credit

Arkansas § 4-5-112

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This text of Arkansas § 4-5-112 (Transfer of letter of credit) is published on Counsel Stack Legal Research, covering Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ark. Code Ann. § 4-5-112 (2026).

Text

(a)Except as otherwise provided in § 4-5-113 , 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 § 4-5-108(e) or is otherwise reasonable under the circumstances.

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(a) Except as otherwise provided in § 4-5-113 , 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 § 4-5-108(e) or is otherwise reasonable under the circumstances.