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§ 5-112. Transfer of letter of credit

West's Annotated Code of MarylandCommercial Law

West's Annotated Code of Maryland
Commercial Law
Title 5. Letters of Credit (Refs & Annos)
MD Code, Commercial Law, § 5-112
§ 5-112. Transfer of letter of credit
Currentness
(a) Except as otherwise provided in § 5-113 of this title, 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 § 5-108(e) of this title or is otherwise reasonable under the circumstances.

Credits

Added by Acts 1997, c. 652, § 2, eff. Oct. 1, 1997.
MD Code, Commercial Law, § 5-112, MD COML § 5-112
Current with legislation effective through June 1, 2023, from the 2023 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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