J. MILLARD TAWES, Governor                      881

(b)  the issuer may honor drafts or demands for payment drawn
under the credit until it receives a notification of the assignment
signed by the beneficiary which reasonably identifies the credit in-
volved in the assignment and contains a request to pay the assignee;
and

(c)  after what reasonably appears to be such a notification has
been received the issuer may without dishonor refuse to accept or
pay even to a person otherwise entitled to honor until the letter of
credit or advice of credit is exhibited to the issuer.

(3) Except where the beneficiary has effectively assigned his right
to draw or his right to proceeds, nothing in this section limits his
right to transfer or negotiate drafts or demands drawn under the
credit.

5—117. Insolvency of Bank Holding Funds for Documentary Credit.

(1)   Where an issuer or an advising or confirming bank, or a bank
which has for a customer procured issuance of a credit by another
bank becomes insolvent before final payment under the credit and
the credit is one to which this Sub-title is made applicable by para-
graphs (a) or (b) of Section 5—102 (1) on scope, the receipt or allo-
cation of funds or collateral to secure or meet obligations under the
credit shall have the following results:

(a)  to the extent of any funds or collateral turned over after or
before the insolvency as indemnity against or specifically for the
purpose of payment of drafts or demands for payment drawn under
the designated credit, the drafts or demands are entitled to payment
in preference over depositors or other general creditors of the issuer
or bank; and

(b)  on expiration of the credit or surrender of the beneficiary's
rights under it unused any person who has given such funds or
collateral is similarly entitled to return thereof; and

(c)  a charge to a general or current account with a bank if specif-
ically consented to for the purpose of indemnity against or payment
of drafts or demands for payment drawn under the designated credit
falls under the same rules as if the funds had been drawn out in
cash and then turned over with specific instructions.

(2)  After honor or reimbursement under this section the customer
or other person for whose account the insolvent bank has acted is
entitled to receive the documents involved.

Sub-title 6

Bulk Transfers
6—101. Short Title.

This Sub-title shall be known and may be cited as Uniform Com-
mercial Code—Bulk Transfers.

6—102. "Bulk Transfer"; Transfers of Equipment; Enterprises
Subject to This Sub-title; Bulk Transfers Subject to this Sub-title.

(1) A "bulk transfer" is any transfer in bulk and not in the ordi-
nary course of the transferor's business of a major part of the