Vermont § 113 - § 5—113.

§ 113. § 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) of this section,
  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 subsection 5—108(e) of this title 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) of this section has the consequences specified in subsection 5—108(i) of this title 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 section 5—109 of this title. (e) An issuer whose rights of reimbursement are not covered by subsection (d) of this
  section or substantially similar law and any confirmer or nominated person may decline
  to recognize a presentation under subsection (b) of this section. (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. (Added 1997, No. 65 (Adj. Sess.), § 1, eff. Jan. 1, 1999.)