N.Y. Uniform Commercial Code Law § 5-113: Transfer by operation of law

Section 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 subsection

(e) of section 5--108 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 subsection (i) of section 5--108 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 section 5--109.

(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.