(5-112) Transfer of letter of credit
N.D. Cent. Code § 41-05-12
in effect41-05-12. (5-112) Transfer of letter of credit
1. Except as otherwise provided in section 41-05-13, 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.
2. Even if a letter of credit provides that it is transferable, the issuer may refuse to
recognize or carry out a transfer if:
a. The transfer would violate applicable law; or
b. 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 5 of section
41-05-08 or is otherwise reasonable under the circumstances.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://ndlegis.gov/cencode/t41c05.pdf#nameddest=41-05-12Fetched: 10/16/2026