N.Y. Uniform Commercial Code Law § 5-112: Transfer of letter of credit

Section 5--112. Transfer of letter of credit.

(a) Except as otherwise provided in section 5--113, unless a letter of

credit provides that it is transferable, the right of a beneficiary to

draw or otherwise demand performance under a letter of credit may not be

transferred.

(b) Even if a letter of credit provides that it 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 credit or any other

requirement relating to transfer imposed by the issuer which

is within the standard practice referred to in subsection (e)

of section 5--108 or is otherwise reasonable under the

circumstances.