§12A-5-102. Definitions.
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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 whose request or for
whose account a letter of credit is issued. The term
includes a person who requests an issuer to issue a
letter of credit on behalf of another if the person
making the request undertakes an obligation to
reimburse the issuer;
(3)"Beneficiary" means a person who under the terms of a
letter of credit is entitled to have its complying
presentation honored. The term includes a person to
whom drawing rights have been transferred under a
transferable letter of credit;
(4)"Confirmer" means a nominated person who undertakes,
at the request or with the consent of the issuer, to
honor a presentation under a letter of credit issued
by another;
(5)"Dishonor" of a letter of credit means failure timely
to honor or to take an interim action, such as
acceptance of a draft, that may be required by the
letter of credit;
(6)"Document" means a draft or other demand, document of
title, investment security, certificate, invoice, or
other record, statement, or representation of fact,
law, right, or opinion:
(i)which is presented in a written or other medium
permitted by the letter of credit or, unless
prohibited by the letter of credit, by the
standard practice referred to in subsection
of Section 5-108 of this title; and
(ii)which is capable of being examined for compliance
with the terms and conditions of the letter of
credit.
A document may not be oral;
(7)"Good faith" means honesty in fact in the conduct or
transaction concerned;
(8)"Honor" of a letter of credit means performance of the
issuer's undertaking in the letter of credit to pay or
deliver an item of value. Unless the letter of credit
otherwise provides, "honor" occurs:
(i)upon payment;
(ii)if the letter of credit provides for acceptance,
upon acceptance of a draft and, at maturity, its
payment; or
(iii)if the letter of credit provides for incurring a
deferred obligation, upon incurring the
obligation and, at maturity, its performance;
(9)"Issuer" means a bank or other person that issues a
letter of credit, but does not include an individual
who makes an engagement for personal, family, or
household purposes;
(10)"Letter of credit" means a definite undertaking that
satisfies the requirements of Section 5-104 of this
title by an issuer to a beneficiary at the request or
for the account of an applicant or, in the case of a
financial institution, to itself or for its own
account, to honor a documentary presentation by
payment or delivery of an item of value;
(11)"Nominated person" means a person whom the issuer:
(i)designates or authorizes to pay, accept,
negotiate, or otherwise give value under a letter
of credit; and
(ii)undertakes by agreement or custom and practice to
reimburse;
(12)"Presentation" means delivery of a document to an
issuer or nominated person for honor or giving of
value under a letter of credit;
(13)"Presenter" means a person making a presentation as or
on behalf of a beneficiary or nominated person;
(14)"Record" means information that is inscribed on a
tangible medium, or that is stored in an electronic or
other medium and is retrievable in perceivable form;
and
(15)"Successor of a beneficiary" means a person who
succeeds to substantially all of the rights of a
beneficiary by operation of law, including a
corporation with or into which the beneficiary has
been merged or consolidated, an administrator,
executor, personal representative, trustee in
bankruptcy, debtor in possession, liquidator, and
receiver.
(b)Definitions in other articles of this title applying to this article and the sections in which they appear are:
"Accept or "Acceptance" Section 3-409.
"Value" Sections 3-303 and 4-2ll.
(c)Article 1 of this title contains certain additional general definitions and principles of construction and interpretation applicable throughout this article. Added by Laws 1961, p. 132, § 5-102. Amended by Laws 1996, c. 56, § 1, eff. Jan. 1, 1997.