Sec. 45.05.112. Transfer of letter of credit.
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Sec. 45.05.112. Transfer of letter of credit.
(a)Except as otherwise provided in AS 45.05.113 , 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 a requirement stated in the letter of credit, or with another requirement that
(A)relates to transfer imposed by the issuer; and
(B)is within the standard practice referred to in AS 45.05.108
(e)or is otherwise reasonable under the circumstances.