KRS 355.5-113: Transfer by operation of law.

(1) 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.

(2) A successor of a beneficiary may consent to ame ndments, 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

(5) 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 KRS 355.5 -108(5) or, in

the absence of such a practice, compliance with other reasonable procedures

sufficient to protect the issuer.

(3) An issuer is not obliged to determine whether a purported successor is a successor

of a beneficiary or whether the signature of a purporte d successor is genuine or

authorized.

(4) Honor of a purported successor's apparently complying presentation under

subsection (1) or (2) of this section has the consequences specified in KRS 355.5 -

108(9) 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 KRS 355.5-109.

(5) An issuer whose right s of reimbursement are not covered by subsection (4) of this

section or substantially similar law and any confirmer or nominated person may

decline to recognize a presentation under subsection (2) of this section.

(6) A beneficiary whose name is changed af ter the issuance of a letter of credit has the

same rights and obligations as a successor of a beneficiary under this section.