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Can you summarize IACO 554.9409?
UNIFORM COMMERCIAL CODE > Restrictions on assignment of letter-of-credit rights ineffective.
Short Summary
This legal document, part of the Iowa Code’s Uniform Commercial Code, addresses the restrictions on the assignment of letter-of-credit rights. It states that any term or rule of law, statute, regulation, custom, or practice that prohibits, restricts, or requires consent for the assignment of or creation of a security interest in a letter-of-credit right is ineffective to the extent that it impairs the creation, attachment, or perfection of a security interest or provides grounds for default, breach, recoupment, claim, defense, termination, or remedy under the letter-of-credit right. However, if a term in a letter of credit is ineffective under this document but would be effective under other laws or customs, it does not enforce the security interest against the relevant parties, impose duties or obligations, or require recognition, payment, or acceptance from the secured party. The document does not mention any specific penalties or exemptions.
Whom does it apply to?
Applicants, issuers, nominated persons, beneficiaries, and secured parties involved in letter-of-credit transactions
What does it govern?
Assignment of letter-of-credit rights
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Iowa