KRS 355.5-112: Transfer of letter of credit.

If a letter of credit is transferable, the issuer may refuse to recognize or carry out a

transfer if:

(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 credi t or any other requirement relating to transfer imposed by the issuer

which is within the standard practice referred to in KRS 355.5 -108(5) or is

otherwise reasonable under the circumstances.