(a) Except as otherwise provided in AS 45.05.113
, 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 a requirement stated in the letter of credit, or with another requirement that


(A) relates to transfer imposed by the issuer; and


(B) is within the standard practice referred to in AS 45.05.108
(e) or is otherwise reasonable under the circumstances.