§ 6A-5-113. Transfer by operation of law.
(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
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§ 6A-5-113. Transfer by operation of law.
(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 § 6A-5-108(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 § 6A-5-108(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 § 6A-5-109.
(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.