- Alaska Statutes.
- Title 45. Trade and Commerce
- Chapter 5. Letters of Credit
- Section 113. Transfer By Operation of Law.
previous: Section 112
. Transfer of Letter of Credit.
next: Section 114
. Assignment of Proceeds.
AS 45.05.113. 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 (e) of this
section, an issuer shall recognize a disclosed successor of a beneficiary as beneficiary in full substitution for the
successor's predecessor upon compliance with
- (1) the requirements for recognition by the issuer of a transfer of drawing rights by operation of law under the standard
practice in AS 45.05.108(e); or
- (2) in the absence of the standard practice referred to in AS 45.05.108(e), 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 (a) or (b) of this section has the
consequences specified in AS 45.05.108(i) 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 not the beneficiary or the successor of the beneficiary are forged documents for
the purposes of AS 45.05.109
- (e) An issuer whose rights of reimbursement are not covered by (d) of this section, or by substantially similar law, and
any confirmer or nominated person may decline to recognize a presentation under (b) of this section.
- (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.
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