Title 47 — Uniform Commercial Code

If a receiving bank has received payment from its customer with respect to a payment order issued in the name of the customer as sender and accepted by the bank and the customer received notification reasonably identifying the order, the customer is precluded from asserting that …

A. If, under this chapter, a receiving bank is obliged to pay interest with respect to a payment order issued to the bank, the amount payable may be determined: 1. By agreement of the sender and receiving bank; or 2. By a funds-transfer system rule if the payment order is transmi…

A. The following rules apply unless the affected parties otherwise agree or subsection C applies: 1. The rights and obligations between the sender of a payment order and the receiving bank are governed by the law of the jurisdiction in which the receiving bank is located. 2. The …

This chapter may be cited as Uniform Commercial Code--Letters of Credit.

A. In this chapter: 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 …

A. This chapter 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 chapter does not by itself require, imply or negate application of the same or a different rule to a situ…

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 47-5108, subsection E.

Consideration is not required to issue, amend, transfer or cancel a letter of credit, advice or confirmation.

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 it so provides. B. After a letter of …

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 applicant and the confirmer had issued the le…

A. Except as otherwise provided in section 47-5109, an issuer shall honor a presentation that, as determined by the standard practice referred to in subsection E of this section, appears on its face strictly to comply with the terms and conditions of the letter of credit. Except …

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 beneficiary on the iss…

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 47-5109, subsection A; and 2. To the applicant that the drawing does n…

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 that is the subject of the dishonor or r…

A. Except as otherwise provided in section 47-5113, 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 of credit provides that it is tr…

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 amendments, sign and prese…

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 credit. The term does not include a beneficiary's drawing ri…

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 when the breach occu…

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 provided in section 47-5104 or by a …

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 the same extent as if the issuer were the…

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. As long as and to the extent that an issuer or nominated person has not been …

This chapter may be cited as uniform commercial code-documents of title.

A. In this chapter, unless the context otherwise requires: 1. "Bailee" means a person that by a warehouse receipt, bill of lading or other document of title acknowledges possession of goods and contracts to deliver them. 2. "Carrier" means a person that issues a bill of lading. 3…

A. This chapter is subject to any treaty or statute of the United States or regulatory statute of this state to the extent the treaty, statute or regulatory statute is applicable. B. This chapter does not modify or repeal any law prescribing the form or content of a document of t…

A. Except as otherwise provided in subsection C, a document of title is negotiable if by its terms the goods are to be delivered to bearer or to the order of a named person. B. A document of title other than one described in subsection A is nonnegotiable. A bill of lading that st…

A. On request of a person entitled under an electronic document of title, the issuer of the electronic document may issue a tangible document of title as a substitute for the electronic document if: 1. The person entitled under the electronic document surrenders control of the do…

A. A person has control of an electronic document of title if a system employed for evidencing the transfer of interests in the electronic document reliably establishes that person as the person to which the electronic document was issued or transferred. B. A system satisfies sub…

A. A warehouse receipt may be issued by any warehouse. B. If goods, including distilled spirits and agricultural commodities, are stored under a statute requiring a bond against withdrawal or a license for the issuance of receipts in the nature of warehouse receipts, a receipt is…

A. A warehouse receipt need not be in any particular form. B. Unless a warehouse receipt provides for each of the following, the warehouse is liable for damages caused to a person injured by its omission: 1. A statement of the location of the warehouse facility where the goods ar…

A party to or purchaser for value in good faith of a document of title, other than a bill of lading, that relies on the description of the goods in the document may recover from the issuer damages caused by the nonreceipt or misdescription of the goods, except to the extent that:…

A. A warehouse is liable for damages for loss of or injury to the goods caused by its failure to exercise care with regard to the goods that a reasonably careful person would exercise under similar circumstances. Unless otherwise agreed, the warehouse is not liable for damages th…

[Repealed or reserved.]

A. A warehouse, by giving notice to the person on whose account the goods are held and any other person known to claim an interest in the goods, may require payment of any charges and removal of the goods from the warehouse at the termination of the period of storage fixed by the…

A. Unless the warehouse receipt provides otherwise, a warehouse shall keep separate the goods covered by each receipt so as to permit at all times identification and delivery of those goods. However, different lots of fungible goods may be commingled. B. If different lots of fung…

If a blank in a negotiable tangible warehouse receipt has been filled in without authority, a good faith purchaser for value and without notice of the lack of authority may treat the insertion as authorized. Any other unauthorized alteration leaves any tangible or electronic ware…

A. A warehouse has a lien against the bailor on the goods covered by a warehouse receipt or storage agreement or on the proceeds thereof in its possession for charges for storage or transportation, including demurrage and terminal charges, insurance, labor or other charges, prese…

A. Except as otherwise provided in subsection B, a warehouse's lien may be enforced by public or private sale of the goods, in bulk or in packages, at any time or place and on any terms that are commercially reasonable, after notifying all persons known to claim an interest in th…

A. A consignee of a nonnegotiable bill of lading that has given value in good faith, or a holder to which a negotiable bill has been duly negotiated, relying on the description of the goods in the bill or on the date shown in the bill, may recover from the issuer damages caused b…

A. The issuer of a through bill of lading, or other document of title embodying an undertaking to be performed in part by a person acting as its agent or by a performing carrier, is liable to any person entitled to recover on the bill or other document for any breach by the other…

A. Unless the bill of lading otherwise provides, a carrier may deliver the goods to a person or destination other than that stated in the bill or may otherwise dispose of the goods, without liability for misdelivery, on instructions from: 1. The holder of a negotiable bill; 2. Th…

A. Except as customary in international transportation, a tangible bill of lading may not be issued in a set of parts. The issuer is liable for damages caused by violation of this subsection. B. If a tangible bill of lading is lawfully issued in a set of parts, each of which cont…

B. On request of any person entitled as against a carrier to control the goods while in transit and on surrender of possession or control of any outstanding bill of lading or other receipt covering the goods, the issuer, subject to section 47-7105, may procure a substitute bill t…

An unauthorized alteration or filling in of a blank in a bill of lading leaves the bill enforceable according to its original tenor.

A. A carrier has a lien on the goods covered by a bill of lading or on the proceeds thereof in its possession for charges after the date of the carrier’s receipt of the goods for storage or transportation, including demurrage and terminal charges, and for expenses necessary for p…

A. A carrier's lien on goods may be enforced by public or private sale of the goods, in bulk or in packages, at any time or place and on any terms that are commercially reasonable, after notifying all persons known to claim an interest in the goods. The notification must include …

A. A carrier that issues a bill of lading, whether negotiable or nonnegotiable, shall exercise the degree of care in relation to the goods that a reasonably careful person would exercise under similar circumstances. This subsection does not affect any statute, regulation or rule …

The obligations imposed by this chapter on an issuer apply to a document of title even if: 1. The document does not comply with the requirements of this chapter or of any other statute, rule or regulation regarding its issuance, form or content; 2. The issuer violated laws regula…

A duplicate or any other document of title purporting to cover goods already represented by an outstanding document of the same issuer does not confer any right in the goods, except as provided in the case of tangible bills of lading in a set of parts, overissue of documents for …

A. A bailee shall deliver the goods to a person entitled under a document of title if the person complies with subsections B and C of this section, unless and to the extent that the bailee establishes any of the following: 1. Delivery of the goods to a person whose receipt was ri…

A bailee that in good faith has received goods and delivered or otherwise disposed of the goods according to the terms of a document of title or pursuant to this chapter is not liable for the goods even if: 1. The person from which the bailee received the goods did not have autho…