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214
LAWS OF MARYLAND
[Ch. 49
(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 § 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 assigned only when the credit is expressly
designated as transferable or assignable.
(2) Even though the credit specifically states that
it is nontransferable 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 [subtitle] TITLE 9
on secured transactions and is governed by that
[subtitle] 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 perfection of the
security interest under [subtitle] TITLE 9; and
(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 involved 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 [pay] 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 [to]
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 [subtitle] TITLE is made applicable by
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