Indiana § 26-1-5.1-113 Successors of beneficiaries; rights; recognition

Indiana Statutes

§ 26-1-5.1-113 — Successors of beneficiaries; rights; recognition

Indiana § 26-1-5.1-113

Title 26COMMERCIAL LAW

Art. 1UNIFORM COMMERCIAL CODE

Ch. 5.1Letters of Credit

This text of Indiana § 26-1-5.1-113 (Successors of beneficiaries; rights; recognition) 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 § 26-1-5.1-113 (2026).

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), 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 IC 26-1-5.1-108(e) or, in the absence of such a practice, compli

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(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), 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 IC 26-1-5.1-108(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) has the consequences specified
in IC 26-1-5.1-108(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 IC 26-1-5.1-109.
(e) An issuer whose rights of reimbursement are not covered by
subsection (d) or substantially similar law and any confirmer or
nominated person may decline to recognize a presentation under
subsection (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.