Section 400.5-101 – Short title.

Effective – 28 Aug 1963 400.5-101. Short title. — This article shall be known and may be cited as “Uniform Commercial Code—Letters of Credit”. ­­——– (L. 1963 p. 503 § 5-101)

Section 400.5-102 – Definitions.

Effective – 28 Aug 1997 400.5-102. Definitions. — (a) In this article: (1) “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; (2) “Applicant” means a person at […]

Section 400.5-103 – Scope.

Effective – 28 Aug 1997 400.5-103. Scope. — (a) This article applies to letters of credit and to certain rights and obligations arising out of transactions involving letters of credit. (b) The statement of a rule in this Article does not by itself require, imply or negate application of the same or a different rule […]

Section 400.5-104 – Formal requirements.

Effective – 28 Aug 1997 400.5-104. 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 400.5-108(e). […]

Section 400.5-105 – Consideration.

Effective – 28 Aug 1997 400.5-105. Consideration. — Consideration is not required to issue, amend, transfer or cancel a letter of credit, advice or confirmation. ­­——– (L. 1963 p. 503 § 5-105, A.L. 1997 S.B. 6)

Section 400.5-106 – Issuance, amendment, cancellation and duration.

Effective – 28 Aug 1997 400.5-106. Issuance, amendment, cancellation and duration. — (a) 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 […]

Section 400.5-107 – Confirmer, nominated person and adviser.

Effective – 28 Aug 1997 400.5-107. Confirmer, nominated person and adviser. — (a) 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 […]

Section 400.5-108 – Issuer’s rights and obligations.

Effective – 28 Aug 1997 400.5-108. Issuer’s rights and obligations. — (a) Except as otherwise provided in section 400.5-109, an issuer shall honor a presentation that, as determined by the standard practice referred to in subsection (e), appears on its face strictly to comply with the terms and conditions of the letter of credit. Except […]

Section 400.5-109 – Fraud and forgery.

Effective – 28 Aug 1997 400.5-109. Fraud and forgery. — (a) 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 […]

Section 400.5-110 – Warranties.

Effective – 28 Aug 1997 400.5-110. Warranties. — (a) If its presentation is honored, the beneficiary warrants: (1) 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 400.5-109(a); and (2) To the applicant that the drawing does […]

Section 400.5-111 – Remedies and damages for wrongful dishonor or breach of obligation.

Effective – 28 Aug 1997 400.5-111. Remedies and damages for wrongful dishonor or breach of obligation. — (a) 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 […]

Section 400.5-112 – Transfer of letter of credit.

Effective – 28 Aug 1997 400.5-112. Transfer of letter of credit. — (a) Except as otherwise provided in section 400.5-113, 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. (b) Even if a letter […]

Section 400.5-113 – Successor of beneficiary, rights.

Effective – 28 Aug 1997 400.5-113. Successor of beneficiary, rights. — (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 […]

Section 400.5-114 – Proceeds of letter of credit, definition, assignment.

Effective – 28 Aug 1997 400.5-114. Proceeds of letter of credit, definition, assignment. — (a) 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 […]

Section 400.5-115 – Statute of limitations.

Effective – 28 Aug 1997 400.5-115. 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 cause of action accrues, whichever occurs later. A cause of action accrues […]

Section 400.5-116 – Choice of law and forum.

Effective – 28 Aug 1997 400.5-116. Choice of law and forum. — (a) 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 […]

Section 400.5-117 – Subrogation of issuer, applicant and nominated person.

Effective – 28 Aug 1997 400.5-117. Subrogation of issuer, applicant and nominated person. — (a) 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 […]

Section 400.5-118 – Security interest in a document.

Effective – 01 Jul 2001 400.5-118. Security interest in a document. — (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 […]