Is N.Y. U.C.C. Law § 5-112 — Transfer of letter of credit still in force?

Statute · New York Uniform Commercial Code

N.Y. U.C.C. Law § 5-112 — Transfer of letter of credit

N.Y. U.C.C. Law § 5-112

Type: Statute
Source: New York Uniform Commercial Code
Jurisdiction: New York
Current through: Nov 5, 2026 (NY Senate Open Legislation)

Section 5--112. Transfer of letter of credit.

Citator

N.Y. U.C.C. Law § 5-112 — Transfer of letter of credit is in force in the current edition of the Code, and nothing recorded condemns it.

Section 5--112. Transfer of letter of credit.

(a) Except as otherwise provided in section 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 subsection (e)

of section 5--108 or is otherwise reasonable under the

circumstances.