N.Y. U.C.C. 5-112

Section 5--112. Transfer of letter of credit.\n (a) Except as otherwise provided in section 5--113, unless a letter of\ncredit provides that it is transferable, the right of a beneficiary to\ndraw or otherwise demand performance under a letter of credit may not be\ntransferred.\n (b) Even if a letter of credit provides that it is transferable, the\nissuer may refuse to recognize or carry out a transfer if:\n (1) the transfer would violate applicable law; or\n (2) the transferor or transferee has failed to comply with any\n requirement stated in the letter of credit or any other\n requirement relating to transfer imposed by the issuer which\n is within the standard practice referred to in subsection (e)\n of section 5--108 or is otherwise reasonable under the\n circumstances.\n