(a) Except as otherwise provided in section 490:5-113, 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.
(b) Even if a letter of credit provides that it is transferable, the issuer may refuse
to recognize or carry out a transfer if:
(1) The transfer would violate applicable law; or
(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 section 490:5-108(e) or is otherwise reasonable under the circumstances.
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