§ 554.5113

554.5113 Transfer by operation of law. 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 disclosingits status as a successor. 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 ofthe beneficiary. Except as otherwise provided in subsection 5, an issuer shall recognize adisclosed successor of a beneficiary as beneficiary in full substitution for its predecessor uponcompliance with the requirements for recognition by the issuer of a transfer of drawing rightsby operation of law under the standard practice referred to in section 554.5108, subsection 5,or, in the absence of such a practice, compliance with other reasonable procedures sufficientto protect the issuer. 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. 4. Honor of a purported successor’s apparently complying presentation under subsection 1 or 2 has the

ssor of a beneficiary or whether the signature of a purported successor is genuine or authorized. 4. Honor of a purported successor’s apparently complying presentation under subsection 1 or 2 has the consequences specified in section 554.5108, subsection 9, even if the purportedsuccessor 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 thesuccessor of the beneficiary are forged documents for the purposes of section 554.5109. 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 apresentation under subsection 2. 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. [C66, 71, 73, 75, 77, 79, 81, §554.5113]96 Acts, ch 1026, §12, 28Referred to in §539.1, 539.2, 554.5108, 554.5112 Sat Dec 23 01:57:41 2023 Iowa Code 2024, Section 554.5113 (25, 0)