(2)__To the extent that a term in a letter of credit is ineffective under subsection (1) but would be effective under law other than this Article or a custom or practice applicable to the letter of credit, to the transfer of a right to draw or otherwise demand performance under the letter of credit or to the assignment of a right to proceeds of the letter of credit, the creation, attachment or perfection of a security interest in the letter-of-credit right:

(a)__Is not enforceable against the applicant, issuer, nominated person or transferee beneficiary;

(b)__Imposes no duties or obligations on the applicant, issuer, nominated person or transferee beneficiary; and

(c)__Does not require the applicant, issuer, nominated person or transferee beneficiary to recognize the security interest, pay or render performance to the secured party or accept payment or other performance from the secured party.

Official Comment

1. Source. New.

2. Purpose and Relevance. This section, patterned on Section 9-408 [Maine cite section 9-1408], limits the effectiveness of attempts to restrict the creation, attachment, or perfection of a security interest in letter-of-credit rights, whether the restriction appears in the letter of credit or a rule of law, custom, or practice applicable to the letter of credit. It protects the creation, attachment, and perfection of a security interest while preventing these events from giving rise to a default or breach by the assignor or from triggering a remedy or defense of the issuer or other person obligated on a letter of credit. Letter-of-credit rights are a type of supporting obligation. See Section 9-102 [Maine cite section 9-1102]. Under Sections 9-203 and 9-308 [Maine cite sections 9-1203 and 9- 1308], a security interest in a supporting obligation attaches and is perfected automatically if the security interest in the supported obligation attaches and is perfected. See Section 9- 107 [Maine cite section 9-1107], Comment 5. The automatic attachment and perfection under Article 9 [Maine cite Article 9- A] would be anomalous or misleading if,