Iowa § 554.5113 Transfer by operation of law

Iowa Statutes

§ 554.5113 — Transfer by operation of law

Iowa § 554.5113

Title XIIICOMMERCE

Ch. 554UNIFORM COMMERCIAL CODE

This text of Iowa § 554.5113 (Transfer by operation of law) is published on Counsel Stack Legal Research, covering Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Iowa Code § 554.5113 (2026).

Text

1.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.

2.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 5, an issuer shall recognize a disclosedsuccessorofabeneficiaryasbeneficiaryinfullsubstitutionforitspredecessorupon 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 554.5108, subsection 5, or, in the absence of such a practice, compliance

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1. 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.
2. 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 5, an issuer shall recognize a
disclosedsuccessorofabeneficiaryasbeneficiaryinfullsubstitutionforitspredecessorupon
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 554.5108, subsection 5,
or, in the absence of such a practice, compliance with other reasonable procedures sufficient
to protect the issuer.
3. 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.
4. Honor of a purported successor’s apparently complying presentation under subsection
1 or 2 has the consequences specified in section 554.5108, subsection 9, 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 554.5109.
5. An issuer whose rights of reimbursement are not covered by subsection 4 or
substantially similar law and any confirmer or nominated person may decline to recognize a
presentation under subsection 2.
6. 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.