47-5113. 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 section 47-5108, subsection E 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 section 47-5108,
subsection I 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 47-5109.
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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