Indiana § 26-1-5.1-112 Transferability

Indiana Statutes

§ 26-1-5.1-112 — Transferability

Indiana § 26-1-5.1-112

Title 26COMMERCIAL LAW

Art. 1UNIFORM COMMERCIAL CODE

Ch. 5.1Letters of Credit

This text of Indiana § 26-1-5.1-112 (Transferability) is published on Counsel Stack Legal Research, covering Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ind. Code § 26-1-5.1-112 (2026).

Text

(a)Except as otherwise provided in IC 26-1-5.1-113, 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 IC 26-1-5.1-108(e) or is otherwise reasonable under the circumstances.

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(a) Except as otherwise provided in IC 26-1-5.1-113, 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 IC 26-1-5.1-108(e) or is otherwise
reasonable under the circumstances.