§5-1101. Short title This Article may be known and cited as the “Uniform Commercial Code — Letters of Credit.” [PL 1997, c. 429, Pt. A, §2 (NEW); PL 1997, c. 429, Pt. A, §4 (AFF).] SECTION HISTORY PL 1997, c. 429, §A2 (NEW). PL 1997, c. 429, §A4 (AFF).
§5-1102. Definitions (1). As used in this Article, unless the context otherwise indicates, the following terms have the following meanings. (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, […]
§5-1103. Scope (1). This Article applies to letters of credit and to certain rights and obligations arising out of transactions involving letters of credit. [PL 1997, c. 429, Pt. A, §2 (NEW); PL 1997, c. 429, Pt. A, §4 (AFF).] (2). The statement of a rule in this Article does not by itself require, […]
§5-1104. 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 by a signature or in accordance with the agreement of the parties or the standard practice referred to in section 5-1108, subsection (5). [PL 1997, c. 429, Pt. […]
§5-1105. Consideration Consideration is not required to issue, amend, transfer or cancel a letter of credit, advice or confirmation. [PL 1997, c. 429, Pt. A, §2 (NEW); PL 1997, c. 429, Pt. A, §4 (AFF).] SECTION HISTORY PL 1997, c. 429, §A2 (NEW). PL 1997, c. 429, §A4 (AFF).
§5-1106. 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. [PL 1997, […]
§5-1107. 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 […]
§5-1108. Issuer’s rights and obligations (1). Except as otherwise provided in section 5‑1109, an issuer shall honor a presentation that, as determined by the standard practice referred to in subsection (5), appears on its face strictly to comply with the terms and conditions of the letter of credit. Except as otherwise provided in section 5‑1113 […]
§5-1109. 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: […]
§5-1110. Warranties (1). If its presentation is honored, the beneficiary warrants to: (a). 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 5‑1109, subsection (1); and [PL 1997, c. 429, Pt. A, §2 (NEW); PL 1997, […]
§5-1111. 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 […]
§5-1112. Transfer of letter of credit (1). Except as otherwise provided in section 5-1113, 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. [PL 1997, c. 429, Pt. A, §2 (NEW); PL 1997, […]
§5-1113. 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. [PL 1997, c. 429, Pt. A, §2 (NEW); PL 1997, c. 429, Pt. […]
§5-1114. 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 […]
§5-1115. Statute of limitations An action to enforce a right or obligation arising under this Article must be commenced within one year after the expiration date of the relevant letter of credit or one year after the claim for relief or cause of action accrues, whichever occurs later. A claim for relief or cause of […]
§5-1116. 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 5‑1104 or by […]
§5-1117. 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 […]
§5-1118. Security interest of issuer or nominated person (1). 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. [PL 1999, c. 699, Pt. B, §18 (NEW); PL 1999, c. […]
