880                             LAWS OF MARYLAND                      [CH. 538

(a)  the issuer must honor the draft or demand for payment if
honor is demanded by a negotiating bank or other holder of the draft
or demand which has taken the draft or demand under the credit and
under circumstances which would make it a holder in due course
(Section 3—302) and in an appropriate case would make it a person
to whom a document of title has been duly negotiated (Section 7—
502) or a bona fide purchaser of a security (Section 8—302); and

(b)  in all other cases as against its customer, an issuer acting in
good faith may honor the draft or demand for payment despite
notification from the customer of fraud, forgery or other defect not
apparent on the face of the documents but a court of appropriate
jurisdiction may enjoin such honor.

(3) Unless otherwise agreed an issuer which has duly honored a
draft or demand for payment is entitled to immediate reimburse-
ment of any payment made under the credit and to be put in effec-
tively available funds not later than the day before maturity of any
acceptance made under the credit.

5—115. Remedy for Improper Dishonor or Anticipatory Repudia-
tion.

(1)   When an issuer wrongfully dishonors a draft or demand for
payment presented under a credit the person entitled to honor has
with respect to any documents the rights of a person in the position
of a seller (Section 2—707) and may recover from the issuer the
face amount of the draft or demand together with incidental damages
under Section 2—710 on seller's incidental damages and interest but
less any amount realized by resale or other use or disposition of the
subject matter of the transaction. In the event no resale or other
utilization is made the documents, goods or other subject matter
involved in the transaction must be turned over to the issuer on
payment of judgment.

(2)   When an issuer wrongfully cancels or otherwise repudiates a
credit before presentment of a draft or demand for payment drawn
under it the beneficiary has the rights of a seller after anticipatory
repudiation by the buyer under Section 2—610 if he learns of the
repudiation in time reasonably to avoid procurement of the required
documents. Otherwise the beneficiary has an immediate right of
action for wrongful dishonor.

5—116. Transfer and Assignment.

(1)   The right to draw under a credit can be transferred or as-
signed only when the credit is expressly designated as transferable
or assignable.

(2)  Even though the credit specifically states that it is nontrans-
ferable or nonassignable the beneficiary may before performance of
the conditions of the credit assign his right to proceeds. Such an
assignment is an assignment of a contract right under Sub-title 9 on
Secured Transactions and is governed by that Sub-title except that

(a) the assignment is ineffective until the letter of credit or advice
of credit is delivered to the assignee which delivery constitutes per-
fection of the security interest under Sub-title 9; and