30-5-132. Transfer of letter of credit. (1) Except as otherwise provided in 30-5-133, 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 30-5-128(5) or is otherwise reasonable under the circumstances.
History: En. Sec. 16, Ch. 536, L. 1997.
Structure Montana Code Annotated
Chapter 5. Uniform Commercial Code Letters of Credit
30-5-118. Security interest of issuer or nominated person
30-5-119. through 30-5-121 reserved
30-5-126. Issuance, amendment, cancellation, and duration
30-5-127. Confirmer, nominated person, and adviser
30-5-128. Issuer's rights and obligations
30-5-132. Transfer of letter of credit
30-5-133. Transfer by operation of law
30-5-134. Assignment of proceeds
30-5-135. Statute of limitations
30-5-136. Choice of law and forum
30-5-137. Subrogation of issuer, applicant, and nominated person