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Can you summarize MNST 336.9-409?
UNIFORM COMMERCIAL CODE > RESTRICTIONS ON ASSIGNMENT OF LETTER OF CREDIT RIGHTS INEFFECTIVE.
Short Summary
This legal document, governed by the Minnesota Statutes under the Uniform Commercial Code, addresses the restrictions on the assignment of letter of credit rights. It states that any term in a letter of credit or any 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 that the assignment or creation of a security interest may give rise to default, breach, claim, or other remedies under the letter of credit right. However, if a term in a letter of credit is ineffective under this provision but would be effective under other laws or customs applicable to the letter of credit, the creation, attachment, or perfection of a security interest in the letter of credit right is not enforceable against the relevant parties and imposes no duties or obligations on them. This document does not mention any specific penalties or exemptions.
Whom does it apply to?
Applicants, issuers, nominated persons, beneficiaries, and transferee beneficiaries of a letter of credit
What does it govern?
Restrictions on assignment of letter of credit rights
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Minnesota