Wis. Stat. § 405.112
Transfer of letter of credit
Redline — January 1, 2003 → current.View current text →
Current — January 1, 2005
As of January 1, 2003
(1) A bank to which a documentary draft or demand for payment is presented under a credit may without dishonor of the draft, demand or credit:
(a) Defer honor until the close of the third banking day following receipt of the documents; and
(b) Further defer honor if the presenter has expressly or impliedly consented thereto.
(2) Failure to honor within the time specified in sub. (1) constitutes dishonor of the draft or demand for payment and of the credit.
(3) Upon dishonor the bank may unless otherwise instructed fulfill its duty to return the draft or demand for payment and the documents by holding them at the disposal of the presenter and sending the presenter an advice to that effect.
(4) "Presenter" means any person presenting a draft or demand for payment for honor under a credit even though that person is a confirming bank or other correspondent which is acting under an issuer's authorization.
(1) Except as otherwise provided in s. 405.113 , 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.
(2) Even if a letter of credit provides that it is transferable, the issuer may refuse to recognize or carry out a transfer if any of the following conditions are met:
(a) The transfer would violate applicable law.
(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 s. 405.108 (5) or is otherwise reasonable under the circumstances.
Official source: Wisconsin State Legislature. Reproduced from public-domain Wisconsin statutes; confirm against the official source for the current text. Not legal advice.