                                 CODE OF VIRGINIA

TRANSFER BY OPERATION OF LAW (§ 8.5A-113)

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), 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 &#xA7; 8.5A-108(e)
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&#8217;s apparently complying presentation
under subsection (a) or (b) has the consequences specified in &#xA7; 8.5A-108(i)
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 &#xA7; 8.5A-109.

e. An issuer whose rights of reimbursement are not covered by subsection (d) or
substantially similar law and any confirmer or nominated person may decline to
recognize a presentation under subsection (b).

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.

HISTORY: 1997, c. 343.