{"data":{"id":"us-ky/krs-355.5-113","jurisdiction":"us-ky","citation":"KRS 355.5-113","heading":"Transfer by operation of law.","body":"(1) A successor of a beneficiary may consent to amendments, sign and present\ndocuments, and receive payment or other items of value in the name of the\nbeneficiary without disclosing its status as a successor.\n(2) A successor of a beneficiary may consent to ame ndments, sign and present\ndocuments, and receive payment or other items of value in its own name as the\ndisclosed successor of the beneficiary. Except as otherwise provided in subsection\n(5) of this section, an issuer shall recognize a disclosed successor of a beneficiary as\nbeneficiary in full substitution for its predecessor upon compliance with the\nrequirements for recognition by the issuer of a transfer of drawing rights by\noperation of law under the standard practice referred to in KRS 355.5 -108(5) or, in\nthe absence of such a practice, compliance with other reasonable procedures\nsufficient to protect the issuer.\n(3) An issuer is not obliged to determine whether a purported successor is a successor\nof a beneficiary or whether the signature of a purporte d successor is genuine or\nauthorized.\n(4) Honor of a purported successor's apparently complying presentation under\nsubsection (1) or (2) of this section has the consequences specified in KRS 355.5 -\n108(9) even if the purported successor is not the successor  of a beneficiary.\nDocuments signed in the name of the beneficiary or of a disclosed successor by a\nperson who is neither the beneficiary nor the successor of the beneficiary are forged\ndocuments for the purposes of KRS 355.5-109.\n(5) An issuer whose right s of reimbursement are not covered by subsection (4) of this\nsection or substantially similar law and any confirmer or nominated person may\ndecline to recognize a presentation under subsection (2) of this section.\n(6) A beneficiary whose name is changed af ter the issuance of a letter of credit has the\nsame rights and obligations as a successor of a beneficiary under this section.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=33605","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:46Z","sha256":"738d1181c9f9282a521b9650826a9e8af3ca008ff96dae4f19fcf7e4286482bc","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.5-112","next":"us-ky/krs-355.5-114"},"notice":"GroundRules: Original legal text. Not legal advice."}