PARRIS N. GLENDENING, Governor                                 Ch. 652

(1)      THE TRANSFER WOULD VIOLATE APPLICABLE LAW; OR

(2)      THE TRANSFEROR OR TRANSFEREE HAS FAILED TO COMPLY WITH
ANY REQUIREMENT STATED IN THE LETTER OF CREDIT OR ANY OTHER
REQUIREMENT RELATING TO TRANSFER IMPOSED BY THE ISSUER WHICH IS WITHIN
THE STANDARD PRACTICE REFERRED TO IN § 5-108(E) OF THIS TITLE OR IS
OTHERWISE REASONABLE UNDER THE CIRCUMSTANCES.

5-113. TRANSFER BY OPERATION OF LAW.

(A)     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.

(B)     A SUCCESSOR OF A BENEFICIARY 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. EXCEPT AS
OTHERWISE PROVIDED IN SUBSECTION (E) OF THIS SECTION, AN ISSUER SHALL
RECOGNIZE A DISCLOSED SUCCESSOR OF A BENEFICIARY AS BENEFICIARY IN FULL
SUBSTITUTION FOR ITS PREDECESSOR UPON COMPLIANCE WITH THE
REQUIREMENTS FOR RECOGNITION BY THE ISSUER OF A TRANSFER OF DRAWING
RIGHTS BY OPERATION OF LAW UNDER THE STANDARD PRACTICE REFERRED TO IN
§ 5-108(E) OF THIS TITLE OR, IN THE ABSENCE OF SUCH A PRACTICE, COMPLIANCE
WITH OTHER REASONABLE PROCEDURES SUFFICIENT TO PROTECT THE ISSUER.

(C)     AN ISSUER IS NOT OBLIGED TO DETERMINE WHETHER A PURPORTED
SUCCESSOR IS A SUCCESSOR OF A BENEFICIARY OR WHETHER THE SIGNATURE OF A
PURPORTED SUCCESSOR IS GENUINE OR AUTHORIZED.

(D)     HONOR OF A PURPORTED SUCCESSOR'S APPARENTLY COMPLYING
PRESENTATION UNDER SUBSECTION (A) OR (B) OF THIS SECTION HAS THE
CONSEQUENCES SPECIFIED IN § 5-108(I) OF THIS TITLE EVEN IF THE PURPORTED
SUCCESSOR IS NOT THE SUCCESSOR OF A BENEFICIARY. DOCUMENTS SIGNED IN
THE NAME OF THE BENEFICIARY OR OF A DISCLOSED SUCCESSOR BY A PERSON
WHO IS NEITHER THE BENEFICIARY NOR THE SUCCESSOR OF THE BENEFICIARY
ARE FORGED DOCUMENTS FOR THE PURPOSES OF § 5-109 OF THIS TITLE.

(E)     AN ISSUER WHOSE RIGHTS OF REIMBURSEMENT ARE NOT COVERED BY
SUBSECTION (D) OF THIS SECTION OR SUBSTANTIALLY SIMILAR LAW AND ANY
CONFIRMER OR NOMINATED PERSON MAY DECLINE TO RECOGNIZE A
PRESENTATION UNDER SUBSECTION (B) OF THIS SECTION.

(F)     A BENEFICIARY WHOSE NAME IS CHANGED AFTER THE ISSUANCE OF A
LETTER OF CREDIT HAS THE SAME RIGHTS AND OBLIGATIONS AS A SUCCESSOR OF A
BENEFICIARY UNDER THIS SECTION.

5-114. ASSIGNMENT OF PROCEEDS.

(A) IN THIS SECTION, "PROCEEDS OF A LETTER OF CREDIT' MEANS THE CASH,
CHECK, ACCEPTED DRAFT, OR OTHER ITEM OF VALUE PAID OR DELIVERED UPON
HONOR OR GIVING OF VALUE BY THE ISSUER OR ANY NOMINATED PERSON UNDER

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