2006 New York Code - Transfer By Operation Of Law.



 
  Section 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) of this section,  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  subsection
  (e)  of section 5--108 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)  of  this  section  has  the  consequences
  specified  in  subsection  (i)  of  section 5--108 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 section 5--109.
    (e) An issuer  whose  rights  of  reimbursement  are  not  covered  by
  subsection  (d)  of  this  section  or substantially similar law and any
  confirmer or nominated person may decline to  recognize  a  presentation
  under subsection (b) of this section.
    (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.

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