554.5112 Transfer of letter of credit. 1. Except as otherwise provided in section 554.5113, unless a letter of credit provides that it is transferable, the right of a beneficiary to draw or otherwise demand performance undera letter of credit may not be transferred. 2. Even if a letter of credit provides that it is transferable, the issuer may refuse to recognize or carry out a transfer if: a. the transfer would violate applicable law; orb. 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 iswithin the standard practice referred to in section 554.5108, subsection 5, or is otherwisereasonable under the circumstances. [C66, 71, 73, 75, 77, 79, 81, §554.5112]96 Acts, ch 1026, §11, 28Referred to in §539.1, 539.2 Sat Dec 23 01:57:40 2023 Iowa Code 2024, Section 554.5112 (24, 0)
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