North Dakota Code 41-05-12 – (5-112) Transfer of letter of credit
Current as of: 2023 | Check for updates
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1. Except as otherwise provided in section 41-05-13, 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.
Terms Used In North Dakota Code 41-05-12
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
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; or
b. 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 subsection 5 of section 41-05-08 or is otherwise reasonable under the circumstances.