{"data":{"id":"us-ok/okla.-stat.-tit.-12a-12a-1-9-409","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 12A, § 12A-1-9-409","heading":"Restrictions on assignment of letter-of-credit rights","body":"ineffective.\n\nRESTRICTIONS ON ASSIGNMENT OF\n\nLETTER-OF-CREDIT RIGHTS INEFFECTIVE\n\n(a) A term in a letter of credit or a rule of law, statute,\n\nregulation, custom, or practice applicable to the letter of credit\n\nwhich prohibits, restricts, or requires the consent of an applicant,\n\nissuer, or nominated person to a beneficiary’s assignment of or\n\ncreation of a security interest in a letter-of-credit right is\n\nineffective to the extent that the term or rule of law, statute,\n\nregulation, custom, or practice:\n\n(1) would impair the creation, attachment, or perfection of a\n\nsecurity interest in the letter-of-credit right; or\n\n(2) provides that the assignment or the creation, attachment,\n\nor perfection of the security interest may give rise to a default,\n\nbreach, right of recoupment, claim, defense, termination, right of\n\ntermination, or remedy under the letter-of-credit right.\n\n(b) To the extent that a term in a letter of credit is\n\nineffective under subsection (a) of this section but would be\n\neffective under law other than this article or a custom or practice\n\napplicable to the letter of credit, to the transfer of a right to\n\ndraw or otherwise demand performance under the letter of credit, or\n\nto the assignment of a right to proceeds of the letter of credit,\n\nthe creation, attachment, or perfection of a security interest in\n\nthe letter-of-credit right:\n\n(1) is not enforceable against the applicant, issuer, nominated\n\nperson, or transferee beneficiary;\n\n(2) imposes no duties or obligations on the applicant, issuer,\n\nnominated person, or transferee beneficiary; and\n\n(3) does not require the applicant, issuer, nominated person,\n\nor transferee beneficiary to recognize the security interest, pay or\n\nrender performance to the secured party, or accept payment or other\n\nperformance from the secured party.","path":["OK Code","Title 12A"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os12A.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"2e434fbfc817c227868999e1787a7b78c93010224c25af595c9c709c2a02d64e","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-12a-12a-1-9-408","next":"us-ok/okla.-stat.-tit.-12a-12a-1-9-501"},"notice":"GroundRules: Original legal text. Not legal advice."}