2021 Maryland Statutes
Commercial Law
Title 5 - Letters of Credit
Section 5-112 - Transfer of Letter of Credit

    (a)    Except as otherwise provided in § 5-113 of this title, 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 § 5-108(e) of this title or is otherwise reasonable under the circumstances.

Disclaimer: These codes may not be the most recent version. Maryland may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.