§ 5-113. 5-113

305 words·~1 min read·/us/ucc/a5/s5-113

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(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 subsection (e), an issuer shall recognize a disclosed successor of a beneficiary as beneficiary in full substitution for its predecessor upon compliance with the requirements for recognition by the issuer of a transfer of drawing rights by operation of law under the standard practice referred to in Section 5-108(e) or, in the absence of such a practice, compliance with 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 subsection

(a)or

(b)has the consequences specified in Section 5-108(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 neither the beneficiary nor the successor of the beneficiary are forged documents for the purposes of Section 5-109 .

(e)An issuer whose rights of reimbursement are not covered by subsection

(d)or substantially similar law and any confirmer or nominated person may decline to recognize a presentation under subsection (b).

(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.