(1).
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.
[
1997, c. 429, Pt. A, §2 (NEW);
1997, c. 429, Pt. A, §4 (AFF)
.]
(2).
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 (5), 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 5-1108, subsection (5) or, in the absence of such a practice, compliance with other reasonable
procedures sufficient to protect the issuer.
[
1997, c. 429, Pt. A, §2 (NEW);
1997, c. 429, Pt. A, §4 (AFF)
.]
(3).
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.
[
1997, c. 429, Pt. A, §2 (NEW);
1997, c. 429, Pt. A, §4 (AFF)
.]
(4).
Honor of a purported successor's apparently complying presentation under subsection (1) or (2) has the consequences specified
in section 5-1108, subsection (9) 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 5-1109.
[
1997, c. 429, Pt. A, §2 (NEW);
1997, c. 429, Pt. A, §4 (AFF)
.]
(5).
An issuer whose rights of reimbursement are not covered by subsection (4) or substantially similar law and any confirmer
or nominated person may decline to recognize a presentation under subsection (2).
[
1997, c. 429, Pt. A, §2 (NEW);
1997, c. 429, Pt. A, §4 (AFF)
.]
(6).
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.
[
1997, c. 429, Pt. A, §2 (NEW);
1997, c. 429, Pt. A, §4 (AFF)
.]
SECTION HISTORY
1997, c. 429, §A2 (NEW).
1997, c. 429, §A4 (AFF).
Data for this page extracted on 10/16/2012 08:20:53.