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Can you summarize NHRS 382-A:9-409?
UNIFORM COMMERCIAL CODE > Restrictions on Assignment of Letter-of-Credit Rights Ineffective.
Short Summary
This legal document, part of the New Hampshire Revised 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 grounds for default, breach, claim, or termination 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 provides clarity on the assignment of letter-of-credit rights and ensures that certain restrictions are ineffective in specific circumstances.
Whom does it apply to?
Applicants, issuers, nominated persons, beneficiaries, and transferee beneficiaries involved in letter-of-credit transactions
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
New Hampshire