Okla. Stat. tit. 12A, § 12A-1-9-409: Restrictions on assignment of letter-of-credit rights

ineffective.

RESTRICTIONS ON ASSIGNMENT OF

LETTER-OF-CREDIT RIGHTS INEFFECTIVE

(a) A term in a letter of credit or a rule of law, statute,

regulation, custom, or practice applicable to the letter of credit

which prohibits, restricts, or requires the consent of an applicant,

issuer, or nominated person to a beneficiary’s assignment of or

creation of a security interest in a letter-of-credit right is

ineffective to the extent that the term or rule of law, statute,

regulation, custom, or practice:

(1) would impair the creation, attachment, or perfection of a

security interest in the letter-of-credit right; or

(2) provides that the assignment or the creation, attachment,

or perfection of the security interest may give rise to a default,

breach, right of recoupment, claim, defense, termination, right of

termination, or remedy under the letter-of-credit right.

(b) To the extent that a term in a letter of credit is

ineffective under subsection (a) of this section but would be

effective under law other than this article or a custom or practice

applicable to the letter of credit, to the transfer of a right to

draw or otherwise demand performance under the letter of credit, or

to the assignment of a right to proceeds of the letter of credit,

the creation, attachment, or perfection of a security interest in

the letter-of-credit right:

(1) is not enforceable against the applicant, issuer, nominated

person, or transferee beneficiary;

(2) imposes no duties or obligations on the applicant, issuer,

nominated person, or transferee beneficiary; and

(3) does not require the applicant, issuer, nominated person,

or transferee beneficiary to recognize the security interest, pay or

render performance to the secured party, or accept payment or other

performance from the secured party.