57A-5-112. Transfer of letter of credit.
(a) Except as otherwise provided in §57A-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 §57A-5-108(e) or is otherwise reasonable under the circumstances.
Source: SL 1998, ch 283, §1.
Structure South Dakota Codified Laws
Title 57A - Uniform Commercial Code
Chapter 05 - Letters Of Credit
Section 57A-5-101 - Short title.
Section 57A-5-102 - Definitions.
Section 57A-5-104 - Formal requirements.
Section 57A-5-105 - Consideration.
Section 57A-5-106 - Issuance, amendment, cancellation, and duration.
Section 57A-5-107 - Confirmer, nominated person, and adviser.
Section 57A-5-108 - Issuer's rights and obligations.
Section 57A-5-110 - Warranties.
Section 57A-5-112 - Transfer of letter of credit.
Section 57A-5-113 - Transfer by operation of law.
Section 57A-5-114 - Assignment of proceeds.
Section 57A-5-115 - Statute of limitations.
Section 57A-5-116 - Choice of law and forum.
Section 57A-5-117 - Subrogation of issuer, applicant, and nominated person.
Section 57A-5-118 - Issuer's security interest in document presented under letter of credit.