(810 ILCS 5/5-112)(from Ch. 26, par. 5-112) Sec. 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 Section 5-108(e) or is otherwise reasonable under the circumstances.