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Can you summarize NVRS 104.9409?
Uniform Commercial CodeOriginal Articles > Restrictions on assignment of letter-of-credit rights ineffective.
Short Summary
This legal document, part of the Nevada Revised Statutes under the Uniform Commercial CodeOriginal Articles, 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 such assignment or creation of security interest may give rise to default, breach, claim, or termination under the letter-of-credit right. If a term in a letter of credit is ineffective under this provision but would be effective under other laws or customs, 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 enforceability and effectiveness of assignments and security interests in letter-of-credit rights.
Whom does it apply to?
Applicants, issuers, nominated persons, beneficiaries, and secured parties involved in letter-of-credit transactions
What does it govern?
Letter-of-credit rights
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Nevada