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Can you summarize IACO 554.5113?
UNIFORM COMMERCIAL CODE > Transfer by operation of law.
Short Summary
This legal document, governed by the Iowa Code under the Uniform Commercial Code, addresses the transfer of drawing rights by operation of law. It outlines the rights and obligations of successors of beneficiaries, issuers, and other parties involved in the transfer process. The document 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 act in its own name as the disclosed successor of the beneficiary. The issuer is required to recognize a disclosed successor of a beneficiary upon compliance with the necessary requirements for recognition. The document also clarifies that an issuer is not obligated to verify the authenticity or authorization of a purported successor’s signature. Additionally, it states that the honor of a purported successor’s presentation has consequences as specified in section 554.5108, subsection 9, even if the purported successor is not the actual successor of a beneficiary. The document further mentions that an issuer, confirmer, or nominated person may decline to recognize a presentation under certain circumstances. Lastly, it states that 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.
Whom does it apply to?
Successors of beneficiaries, issuers, and persons involved in the transfer of drawing rights
What does it govern?
Transfer of drawing rights by operation of law under the standard practice referred to in section 554.5108, subsection 5
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Iowa