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Can you summarize VACV 8.5A-113?
Uniform Commercial Code Letters of Credit > Transfer by operation of law
Short Summary
This legal document governs the transfer of drawing rights by operation of law under the Uniform Commercial Code Letters of Credit. It outlines the rights and obligations of successors of beneficiaries, issuers, confirmer, and nominated persons. 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 consent to amendments, sign and present documents, and receive payment or other items of value in its own name as the disclosed successor of the beneficiary. The issuer is not obliged to determine the authenticity or authorization of a purported successor’s signature. The document also specifies the consequences of honoring a purported successor’s presentation, even if they are not the true successor. Additionally, it states that an issuer, confirmer, or nominated person may decline to recognize a presentation under certain circumstances. Furthermore, it grants the same rights and obligations to a beneficiary whose name is changed after the issuance of a letter of credit as a successor of a beneficiary. Overall, this document provides guidelines for the recognition and transfer of drawing rights in the context of letters of credit.
Whom does it apply to?
Successors of beneficiaries, issuers, confirmer, nominated person
What does it govern?
Uniform Commercial Code Letters of Credit
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Virginia