Section 28-5-101 – SHORT TITLE.

28-5-101. SHORT TITLE. This chapter may be cited as "Uniform Commercial Code — Letters of Credit." History: [28-5-101, added 1996, ch. 7, sec. 2, p. 9.]

Section 28-5-102 – DEFINITIONS.

28-5-102. DEFINITIONS. (1) In this chapter: (a) "Adviser" means a person who, at the request of the issuer, a confirmer, or another adviser, notifies or requests another adviser to notify the beneficiary that a letter of credit has been issued, confirmed, or amended. (b) "Applicant" means a person at whose request or for whose account […]

Section 28-5-103 – SCOPE.

28-5-103. SCOPE. (1) This chapter applies to letters of credit and to certain rights and obligations arising out of transactions involving letters of credit. (2) The statement of a rule in this chapter does not by itself require, imply, or negate application of the same or a different rule to a situation not provided for, […]

Section 28-5-104 – FORMAL REQUIREMENTS.

28-5-104. FORMAL REQUIREMENTS. A letter of credit, confirmation, advice, transfer, amendment, or cancellation may be issued in any form that is a record and is authenticated (i) by a signature or (ii) in accordance with the agreement of the parties or the standard practice referred to in section 28-5-108(5). History: [28-5-104, added 1996, ch. 7, […]

Section 28-5-105 – CONSIDERATION.

28-5-105. CONSIDERATION. Consideration is not required to issue, amend, transfer, or cancel a letter of credit, advice, or confirmation. History: [28-5-105, added 1996, ch. 7, sec. 2, p. 11.]

Section 28-5-106 – ISSUANCE, AMENDMENT, CANCELLATION, AND DURATION.

28-5-106. ISSUANCE, AMENDMENT, CANCELLATION, AND DURATION. (1) A letter of credit is issued and becomes enforceable according to its terms against the issuer when the issuer sends or otherwise transmits it to the person requested to advise or to the beneficiary. A letter of credit is revocable only if it so provides. (2) After a […]

Section 28-5-107 – CONFIRMER, NOMINATED PERSON, AND ADVISER.

28-5-107. CONFIRMER, NOMINATED PERSON, AND ADVISER. (1) A confirmer is directly obligated on a letter of credit and has the rights and obligations of an issuer to the extent of its confirmation. The confirmer also has rights against and obligations to the issuer as if the issuer were an applicant and the confirmer had issued […]

Section 28-5-108 – ISSUER’S RIGHTS AND OBLIGATIONS.

28-5-108. ISSUER’S RIGHTS AND OBLIGATIONS. (1) Except as otherwise provided in section 28-5-109, an issuer shall honor a presentation that, as determined by the standard practice referred to in subsection (5) of this section, appears on its face strictly to comply with the terms and conditions of the letter of credit. Except as otherwise provided […]

Section 28-5-109 – FRAUD AND FORGERY.

28-5-109. FRAUD AND FORGERY. (1) If a presentation is made that appears on its face strictly to comply with the terms and conditions of the letter of credit, but a required document is forged or materially fraudulent, or honor of the presentation would facilitate a material fraud by the beneficiary on the issuer or applicant: […]

Section 28-5-110 – WARRANTIES.

28-5-110. WARRANTIES. (1) If its presentation is honored, the beneficiary warrants: (a) to the issuer, any other person to whom presentation is made, and the applicant that there is no fraud or forgery of the kind described in section 28-5-109(1); and (b) to the applicant that the drawing does not violate any agreement between the […]

Section 28-5-111 – REMEDIES.

28-5-111. REMEDIES. (1) If an issuer wrongfully dishonors or repudiates its obligation to pay money under a letter of credit before presentation, the beneficiary, successor, or nominated person presenting on its own behalf may recover from the issuer the amount that is the subject of the dishonor or repudiation. If the issuer’s obligation under the […]

Section 28-5-112 – TRANSFER OF LETTER OF CREDIT.

28-5-112. TRANSFER OF LETTER OF CREDIT. (1) Except as otherwise provided in section 28-5-113, 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 […]

Section 28-5-113 – TRANSFER BY OPERATION OF LAW.

28-5-113. TRANSFER BY OPERATION OF LAW. (1) 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. (2) A successor of a beneficiary may consent to amendments, sign and present documents, […]

Section 28-5-114 – ASSIGNMENT OF PROCEEDS.

28-5-114. ASSIGNMENT OF PROCEEDS. (1) In this section, "proceeds of a letter of credit" means the cash, check, accepted draft, or other item of value paid or delivered upon honor or giving of value by the issuer or any nominated person under the letter of credit. The term does not include a beneficiary’s drawing rights […]

Section 28-5-115 – STATUTE OF LIMITATIONS.

28-5-115. STATUTE OF LIMITATIONS. An action to enforce a right or obligation arising under this chapter must be commenced within one (1) year after the expiration date of the relevant letter of credit or one (1) year after the cause of action accrues, whichever occurs later. A cause of action accrues when the breach occurs, […]

Section 28-5-116 – CHOICE OF LAW AND FORUM.

28-5-116. CHOICE OF LAW AND FORUM. (1) The liability of an issuer, nominated person, or adviser for action or omission is governed by the law of the jurisdiction chosen by an agreement in the form of a record signed or otherwise authenticated by the affected parties in the manner provided in section 28-5-104 or by […]

Section 28-5-117 – SUBROGATION OF ISSUER, APPLICANT, AND NOMINATED PERSON.

28-5-117. SUBROGATION OF ISSUER, APPLICANT, AND NOMINATED PERSON. (1) An issuer that honors a beneficiary’s presentation is subrogated to the rights of the beneficiary to the same extent as if the issuer were a secondary obligor of the underlying obligation owed to the beneficiary and of the applicant to the same extent as if the […]

Section 28-5-118 – APPLICABILITY.

28-5-118. APPLICABILITY. This act applies to a letter of credit that is issued on or after the effective date of this act. This act does not apply to a transaction, event, obligation, or duty arising out of or associated with a letter of credit that was issued before the effective date of this act. History: […]

Section 28-5-119 – SAVINGS CLAUSE.

28-5-119. SAVINGS CLAUSE. A transaction arising out of or associated with a letter of credit that was issued before the effective date of this act and the rights, obligations, and interests flowing from that transaction are governed by any statute or other law amended or repealed by this act as if repeal or amendment had […]

Section 28-5-120 – SECURITY INTEREST OF ISSUER OR NOMINATED PERSON.

28-5-120. SECURITY INTEREST OF ISSUER OR NOMINATED PERSON. (a) An issuer or nominated person has a security interest in a document presented under a letter of credit to the extent that the issuer or nominated person honors or gives value for the presentation. (b) So long as and to the extent that an issuer or […]