N.Y. UCC. LAW § 5--112 : NY Code - Section 5--112: Transfer of letter of credit

Search N.Y. UCC. LAW § 5--112 : NY Code - 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.