MS 1996 [Repealed, 1997 c 11 art 1 s 20
336.5-113 TRANSFER BY OPERATION OF LAW.
(a) 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.
(b) 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 (e), 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
or, in the absence of such a
practice, compliance with other reasonable procedures sufficient to protect the issuer.
(c) 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.
(d) Honor of a purported successor's apparently complying presentation under subsection
(a) or (b) has the consequences specified in section
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
(e) An issuer whose rights of reimbursement are not covered by subsection (d) or
substantially similar law and any confirmer or nominated person may decline to recognize a
presentation under subsection (b).
(f) 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.
History: 1997 c 11 art 1 s 13