§ 4-5-113 — Transfer by operation of law

Colorado § 4-5-113

• Jurisdiction: Colorado
• Title 04: Uniform
• Art.: 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
subsection (e) of this section, 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 section 4-5-108 (e) 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 subsection (a) or (b) of this section has the consequences specified in section
4-5-108 (i) 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 4-5-109.

(e) An issuer whose rights of reimbursement are not covered by subsection
(d) of this section or substantially similar law and any confirmer or nominated
person may decline to recognize a presentation under subsection (b) of this section.

(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

Source: L. 96: Entire article R&RE, p. 198, � 1, effective July 1.