§5-1118. Security interest of issuer or nominated person
270 words·~1 min read·
/me/title-11-uniform-commercial-code/5-1118A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(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. 699, Pt. B, §28 (AFF).]
(2). So long as and to the extent that an issuer or nominated person has not been reimbursed or has not otherwise recovered the value given with respect to a security interest in a document under subsection
(1), the security interest continues and is subject to Article 9‑A , but:
(a). A security agreement is not necessary to make the security interest enforceable under section 9‑1203, subsection (2), paragraph
(c); [PL 1999, c. 699, Pt. B, §18 (NEW); PL 1999, c. 699, Pt. B, §28 (AFF).]
(b). If the document is presented in a medium other than a written or other tangible medium, the security interest is perfected; and [PL 1999, c. 699, Pt. B, §18 (NEW); PL 1999, c. 699, Pt. B, §28 (AFF).]
(c). If the document is presented in a written or other tangible medium and is not a certificated security, chattel paper, a document of title, an instrument or a letter of credit, the security interest is perfected and has priority over a conflicting security interest in the document so long as the debtor does not have possession of the document. [PL 1999, c. 699, Pt. B, §18 (NEW); PL 1999, c. 699, Pt. B, §28 (AFF).]
[PL 1999, c. 699, Pt. B, §18 (NEW); PL 1999, c. 699, Pt. B, §28 (AFF).]