§ 5113. — 5113. (Repealed and added by Stats. 1996, Ch. 176, Sec. 7.)

California § 5113.

• Jurisdiction: California
• Code COM: Commercial Code - COM
• Div. 5.: DIVISION 5. LETTERS OF CREDIT

Text

(a)
A successor of a beneficiary may consent to amendments, sign and present documents, and receive payment or other items of value in the name of the beneficiary without disclosing its status as a successor.
(b)
A successor of a beneficiary may consent to amendments, sign and present documents, and receive payment or other items of value in its own name as the disclosed successor of the beneficiary. Except as otherwise provided in subdivision (e), an issuer shall recognize a disclosed successor of a beneficiary as beneficiary in full substitution for its predecessor upon compliance with the requirements for recognition by the issuer of a transfer of drawing rights by operation of law under the standard practice referred to in subdivision (e) of Section 5108 or, in the absence of such a practice, compliance with other reasonable procedures sufficient to protect the issuer.
(c)
An issuer is not obliged to determine
whether a purported successor is a successor of a beneficiary or whether the signature of a purported successor is genuine or authorized.
(d)
Honor of a purported successor’s apparently complying presentation under subdivision (a) or (b) has the consequences specified in subdivision (i) of Section 5108 even if the purported successor is not the successor of a beneficiary. Documents signed in the name of the beneficiary or of a disclosed successor by a person who is neither the beneficiary nor the successor of the beneficiary are forged documents for the purposes of Section 5109.
(e)
An issuer whose rights of reimbursement are not covered by subdivision (d) or substantially similar law and any confirmer or nominated person may decline to recognize a presentation under subdivision (b).
(f)
A beneficiary whose name is changed after the issuance of a letter of credit has the same rights and obligations as a successor of a
beneficiary under this section.

Legislative History

Repealed and added by Stats. 1996, Ch. 176, Sec. 7. Effective January 1, 1997.