§ 5-113 — Transfer by operation of law

New York § 5-113

• Jurisdiction: New York
• Law UCC: Uniform Commercial Code
• Art. 5: Letters of Credit

Text

Section 5--113. Transfer by operation of law.\n (a) A successor of a beneficiary may consent to amendments, sign and\npresent documents, and receive payment or other items of value in the\nname of the beneficiary without disclosing its status as a successor.\n (b) A successor of a beneficiary may consent to amendments, sign and\npresent documents, and receive payment or other items of value in its\nown name as the disclosed successor of the beneficiary. Except as\notherwise provided in subsection (e) of this section, an issuer shall\nrecognize a disclosed successor of a beneficiary as beneficiary in full\nsubstitution for its predecessor upon compliance with the requirements\nfor recognition by the issuer of a transfer of drawing rights by\noperation of law under the standard practice referred to in subsection\n(e) of section 5--108 or, in the absence of such a practice, compliance\nwith other reasonable procedures sufficient to protect the issuer.\n (c) An issuer is not obliged to determine whether a purported\nsuccessor is a successor of a beneficiary or whether the signature of a\npurported successor is genuine or authorized.\n (d) Honor of a purported successor's apparently complying presentation\nunder subsection (a) or (b) of this section has the consequences\nspecified in subsection (i) of section 5--108 even if the purported\nsuccessor is not the successor of a beneficiary. Documents signed in the\nname of the beneficiary or of a disclosed successor by a person who is\nneither the beneficiary nor the successor of the beneficiary are forged\ndocuments for the purposes of section 5--109.\n (e) An issuer whose rights of reimbursement are not covered by\nsubsection (d) of this section or substantially similar law and any\nconfirmer or nominated person may decline to recognize a presentation\nunder subsection (b) of this section.\n (f) A beneficiary whose name is changed after the issuance of a letter\nof credit has the same rights and obligations as a successor of a\nbeneficiary under this section.\n