84-5-112. Transfer of letter of credit. (a) Except as otherwise provided in K.S.A. 84-5-113, 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.
(b) Even if a letter of credit provides that it is transferable, the issuer may refuse to recognize or carry out a transfer if:
(1) The transfer would violate applicable law; or
(2) 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 K.S.A. 84-5-108(e) or is otherwise reasonable under the circumstances.
History: L. 1996, ch. 202, ยง 12; July 1.
Structure Kansas Statutes
Chapter 84 - Uniform Commercial Code
84-5-106 Issuance, amendment, cancellation and duration.
84-5-107 Confirmer, nominated person and adviser.
84-5-108 Issuer's rights and obligations.
84-5-112 Transfer of letter of credit.
84-5-113 Transfer by operation of law.
84-5-114 Assignment of proceeds.
84-5-115 Statute of limitations.
84-5-116 Choice of law and forum.
84-5-117 Subrogation of issuer, applicant and nominated person.