2019 Indiana Code
Title 26. Commercial Law
Article 1. Uniform Commercial Code
Chapter 5.1. Letters of Credit
26-1-5.1-112. Transferability

Universal Citation:
IN Code § 26-1-5.1-112 (2019)
Learn more This media-neutral citation is based on the American Association of Law Libraries Universal Citation Guide and is not necessarily the official citation.
IC 26-1-5.1-112 Transferability

Sec. 112. (a) Except as otherwise provided in IC 26-1-5.1-113, 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 IC 26-1-5.1-108(e) or is otherwise reasonable under the circumstances.

As added by P.L.183-1996, SEC.4.

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