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Can you summarize Com Code CACL Division 5?
Commercial Code > LETTERS OF CREDIT [5101. - 5118.]
Short Summary
This section of the California Commercial Code governs the rights and obligations of successors of beneficiaries in letters of credit. It specifies that 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. Alternatively, a successor 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. The issuer is not obliged to determine the authenticity or authorization of a purported successor’s signature. If a purported successor’s presentation complies with the requirements, it has the consequences specified in Section 5108. However, an issuer, confirmer, or nominated person may decline to recognize a presentation under certain circumstances. Additionally, 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. This section provides the framework and terminology for the issuance, confirmation, amendment, and honoring of letters of credit in California.
Whom does it apply to?
Successors of beneficiaries, issuers, confirmers, nominated persons, and beneficiaries whose name is changed after the issuance of a letter of credit
What does it govern?
Rights and obligations of successors of beneficiaries in letters of credit
What are exemptions?
Individuals who make an engagement for personal, family, or household purposes
What are the Penalties?
No specific penalties mentioned
Jurisdiction
California