Section 5–112. (a) Except as otherwise provided in section 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 subsection (e) of section 5–108 or is otherwise reasonable under the circumstances.
Structure Massachusetts General Laws
Part I - Administration of the Government
Title XV - Regulation of Trade
Chapter 106 - Uniform Commercial Code
Section 5-113 - Transfer by Operation of Law
Section 5-118 - Security Interest of Issuer or Nominated Person
Section 5-117 - Subrogation of Issuer, Applicant, and Nominated Person
Section 5-116 - Choice of Law and Forum
Section 5-115 - Statute of Limitations
Section 5-114 - Assignment of Proceeds
Section 5-112 - Transfer of Letter of Credit
Section 5-109 - Fraud and Forgery
Section 5-104 - Formal Requirements
Section 5-106 - Issuance, Amendment, Cancellation, and Duration
Section 5-107 - Confirmer, Nominated Person, and Adviser