57A-5-113. Transfer by operation of law.
(a) A successor of a beneficiary may consent to amendments, sign and present documents, and receive payment or other items of value in the name of the beneficiary without disclosing its status as a successor.
(b) A successor of a beneficiary may consent to amendments, sign and present documents, and receive payment or other items of value in its own name as the disclosed successor of the beneficiary. Except as otherwise provided in subsection (e), an issuer shall recognize a disclosed successor of a beneficiary as beneficiary in full substitution for its predecessor upon compliance with the requirements for recognition by the issuer of a transfer of drawing rights by operation of law under the standard practice referred to in §57A-5-108(e) or, in the absence of such a practice, compliance with other reasonable procedures sufficient to protect the issuer.
(c) An issuer is not obliged to determine whether a purported successor is a successor of a beneficiary or whether the signature of a purported successor is genuine or authorized.
(d) Honor of a purported successor's apparently complying presentation under subsection (a) or (b) has the consequences specified in §57A-5-108(i) even if the purported successor is not the successor of a beneficiary. Documents signed in the name of the beneficiary or of a disclosed successor by a person who is neither the beneficiary nor the successor of the beneficiary are forged documents for the purposes of §57A-5-109.
(e) An issuer whose rights of reimbursement are not covered by subsection (d) or substantially similar law and any confirmer or nominated person may decline to recognize a presentation under subsection (b).
(f) A beneficiary whose name is changed after the issuance of a letter of credit has the same rights and obligations as a successor of a beneficiary under this section.
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.