(810 ILCS 5/5-113)
(from Ch. 26, par. 5-113)
Transfer by operation of law.
(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 Section 5-108(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's apparently complying
presentation under subsection (a) or (b) has the consequences specified in
Section 5-108(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
(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.
(Source: P.A. 89-534, eff. 1-1-97.)