Sec. 5112.
(1) Except as otherwise provided in section 5113, 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 either of the following applies:
(a) The transfer would violate applicable law.
(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 5108(5) or is otherwise reasonable under the circumstances.
History: 1962, Act 174, Eff. Jan. 1, 1964 ;-- Am. 1998, Act 488, Imd. Eff. Jan. 4, 1999
Structure Michigan Compiled Laws
Chapter 440 - Uniform Commercial Code
Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102)
Article 5 - Letters of Credit (440.5101...440.5118)
Section 440.5101 - Uniform Commercial Code—letters of Credit; Short Title of Article.
Section 440.5102 - Definitions.
Section 440.5103 - Letters of Credit; Scope of Article.
Section 440.5104 - Issuance; Authentication.
Section 440.5105 - Consideration.
Section 440.5106 - Credit; Issuance; Enforcement; Revocation; Expiration.
Section 440.5108 - Honoring or Dishonoring Presentation.
Section 440.5109 - Forged or Fraudulent Document; Injunction; Findings of Court.
Section 440.5110 - Warranties on Presentment or Transfer.
Section 440.5112 - Right to Draw or Demand Performance Under Letter of Credit; Transfer.
Section 440.5113 - Rights of Successor Beneficiary.
Section 440.5114 - Proceeds of Letter of Credit.
Section 440.5115 - Commencement of Action.
Section 440.5116 - Jurisdiction; Forum.