§490:5-112  Transfer of letter of credit. 
(a)  Except as otherwise provided in section 490:5-113, 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 section 490:5-108(e) or is otherwise reasonable under
the circumstances. [L 1996, c 39, pt of §1]