§ 41-05-13 — (5-113) Transfer by operation of law

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 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 subsection 5 of section 41-05-08 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 subsection 9 of section 41-05-08
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 41-05-09.
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.