If a letter of credit is transferable, the issuer may refuse to recognize or carry out a transfer if:
(1) The transfer would violate applicable law; or

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Terms Used In Kentucky Statutes 355.5-112


(2) 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 is within the standard practice referred to in KRS § 355.5-108(5) or is otherwise reasonable under the circumstances.
Effective: July 1, 2001
History: Repealed and reenacted 2000 Ky. Acts ch. 408, sec. 12, effective July 1, 2001.
— Created 1958 Ky. Acts ch. 77, sec. 5-112, effective July 1, 1960.