Source: http://dccode.elaws.us/code?no=28:5-113
Timestamp: 2019-11-19 20:28:00
Document Index: 609282706

Matched Legal Cases: ['§ 28', '§ 28', '§ 28', '§ 28', '§ 1', '§ 7', '§ 2', '§ 27', '§ 28', '§ 28', '§ 28', '§ 28', '§ 28']

§ 28:5-113. Transfer by operation of law.
(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 § 28:5-108(e) or, in the absence of such a practice, compliance with other reasonable procedures sufficient to protect the issuer.
(d) Honor of a purported successor's apparently complying presentation under subsection (a) or (b) of this section has the consequences specified in § 28:5-108(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 § 28:5-109.
(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).
(Dec. 30, 1963, 77 Stat. 713, Pub. L. 88-243, § 1; Mar. 16, 1982, D.C. Law 4-85, § 7, 29 DCR 309; Apr. 9, 1997, D.C. Law 11-238, § 2, 44 DCR 923; Apr. 9, 1997, D.C. Law 11-255, § 27(uu), 44 DCR 1271.)
This section affirms the result in Pastor v. Nat. Republic Bank of Chicago, 76 Ill.2d 139, 390 N.E.2d 894 (Ill.1979) and Federal Deposit Insurance Co. v. Bank of Boulder, 911 F.2d 1466 (10th Cir.1990).
An issuer's requirements for recognition of a successor's status might include presentation of a certificate of merger, a court order appointing a bankruptcy trustee or receiver, a certificate of appointment as bankruptcy trustee, or the like. The issuer is entitled to rely upon such documents which on their face demonstrate that presentation is made by a successor of a beneficiary. It is not obliged to make an independent investigation to determine the fact of succession.
1981 Ed., § 28:5-113.
1973 Ed., § 28:5-113.
For legislative history of D.C. Law 4-85, see Historical and Statutory Notes following § 28:5-112.
For legislative history of D.C. Law 11-238, see Historical and Statutory Notes following § 28:5-101.
For legislative history of D.C. Law 11-255, see Historical and Statutory Notes following § 28:5-101.