28-5-112. TRANSFER OF LETTER OF CREDIT. (1) Except as otherwise provided in section 28-5-113, 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.
(2) Even if a letter of credit provides that it is transferable, the issuer may refuse to recognize or carry out a transfer if:
(a) the transfer would violate applicable law, or
(b) 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 section 28-5-108(5) or is otherwise reasonable under the circumstances.
History:
[28-5-112, added 1996, ch. 7, sec. 2, p. 15.]
Structure Idaho Code
Title 28 - COMMERCIAL TRANSACTIONS
Chapter 5 - UNIFORM COMMERCIAL CODE — LETTERS OF CREDIT
Section 28-5-101 - SHORT TITLE.
Section 28-5-102 - DEFINITIONS.
Section 28-5-104 - FORMAL REQUIREMENTS.
Section 28-5-105 - CONSIDERATION.
Section 28-5-106 - ISSUANCE, AMENDMENT, CANCELLATION, AND DURATION.
Section 28-5-107 - CONFIRMER, NOMINATED PERSON, AND ADVISER.
Section 28-5-108 - ISSUER’S RIGHTS AND OBLIGATIONS.
Section 28-5-109 - FRAUD AND FORGERY.
Section 28-5-110 - WARRANTIES.
Section 28-5-112 - TRANSFER OF LETTER OF CREDIT.
Section 28-5-113 - TRANSFER BY OPERATION OF LAW.
Section 28-5-114 - ASSIGNMENT OF PROCEEDS.
Section 28-5-115 - STATUTE OF LIMITATIONS.
Section 28-5-116 - CHOICE OF LAW AND FORUM.
Section 28-5-117 - SUBROGATION OF ISSUER, APPLICANT, AND NOMINATED PERSON.
Section 28-5-118 - APPLICABILITY.
Section 28-5-119 - SAVINGS CLAUSE.
Section 28-5-120 - SECURITY INTEREST OF ISSUER OR NOMINATED PERSON.