California Commercial Code

§ 5112

COM § 5112 Effective Jan 1, 1997Div. 5

Statute text

(a)Except as otherwise provided in Section 5113, 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

…

Legislative history

Repealed and added by Stats. 1996, Ch. 176, Sec. 7. Effective January 1, 1997.