Title 27, Uniform Commercial Code

§490:4A-207 Misdescription of beneficiary. (a) Subject to subsection (b), if, in a payment order received by the beneficiary's bank, the name, bank account number, or other identification of the beneficiary refers to a nonexistent or unidentifiable person or account, no person ha…

§490:4A-208 Misdescription of intermediary bank or beneficiary's bank. (a) This subsection applies to a payment order identifying an intermediary bank or the beneficiary's bank only by an identifying number. (b) This subsection applies to a payment order identifying an intermedia…

§490:4A-209 Acceptance of payment order. (a) Subject to subsection (d), a receiving bank other than the beneficiary's bank accepts a payment order when it executes the order. (b) Subject to subsections (c) and (d), a beneficiary's bank accepts a payment order at the earliest of t…

§490:4A-210 Rejection of payment order. (a) A payment order shall be deemed rejected by the receiving bank by a notice of rejection transmitted to the sender orally or in a record. A notice of rejection need not use any particular words and shall be sufficient if it indicates tha…

§490:4A-211 Cancellation and amendment of payment order. (a) A communication of the sender of a payment order canceling or amending the order may be transmitted to the receiving bank orally or in a record. If a security procedure is in effect between the sender and the receiving …

§490:4A-212 Liability and duty of receiving bank regarding unaccepted payment order. If a receiving bank fails to accept a payment order that it is obliged by express agreement to accept, the bank is liable for breach of the agreement to the extent provided in the agreement or in…

PART 3. EXECUTION OF SENDER'S PAYMENT ORDER BY RECEIVING BANK §490:4A-301 Execution and execution date. (a) A payment order is "executed" by the receiving bank when it issues a payment order intended to carry out the payment order received by the bank. A payment order received by…

§490:4A-302 Obligations of receiving bank in execution of payment order. (a) Except as provided in subsections (b) through (d), if the receiving bank accepts a payment order pursuant to section 490:4A-209(a), the bank has the following obligations in executing the order: (b) Unle…

§490:4A-303 Erroneous execution of payment order. (a) A receiving bank that (i) executes the payment order of the sender by issuing a payment order in an amount greater than the amount of the sender's order, or (ii) issues a payment order in execution of the sender's order and th…

§490:4A-304 Duty of sender to report erroneously executed payment order. If the sender of a payment order that is erroneously executed as stated in section 490:4A-303 receives notification from the receiving bank that the order was executed or that the sender's account was debite…

§490:4A-305 Liability for late or improper execution or failure to execute payment order. (a) If a funds transfer is completed, but execution of a payment order by the receiving bank in breach of section 490:4A-302 results in delay in payment to the beneficiary, the bank is oblig…

PART 4. PAYMENT §490:4A-401 Payment date. "Payment date" of a payment order means the day on which the amount of the order is payable to the beneficiary by the beneficiary's bank. The payment date may be determined by instruction of the sender but cannot be earlier than the day t…

§490:4A-402 Obligation of sender to pay receiving bank. (a) This section is subject to sections 490:4A-205 and 490:4A-207. (b) With respect to a payment order issued to the beneficiary's bank, acceptance of the order by the bank obliges the sender to pay the bank the amount of th…

§490:4A-403 Payment by sender to receiving bank. (a) Payment of the sender's obligation under section 490:4A-402 to pay the receiving bank occurs as follows: (b) If the sender and receiving bank are members of a funds-transfer system that nets obligations multilaterally among par…

§490:4A-404 Obligation of beneficiary's bank to pay and give notice to beneficiary. (a) Subject to sections 490:4A-211(e), 490:4A-405(d), and 490:4A-405(e), if a beneficiary's bank accepts a payment order, the bank is obliged to pay the amount of the order to the beneficiary of t…

§490:4A-405 Payment by beneficiary's bank to beneficiary. (a) If the beneficiary's bank credits an account of the beneficiary of a payment order, payment of the bank's obligation under section 490:4A-404(a) occurs when and to the extent (i) the beneficiary is notified of the righ…

§490:4A-406 Payment by originator to beneficiary; discharge of underlying obligation. (a) Subject to sections 490:4A-211(e), 490:4A-405(d), and 490:4A-405(e), the originator of a funds transfer pays the beneficiary of the originator's payment order (i) at the time a payment order…

PART 5. MISCELLANEOUS PROVISIONS §490:4A-501 Variation by agreement and effect of funds-transfer system rule. (a) Except as otherwise provided in this article, rights and obligations of a party to a funds transfer may be varied by agreement of the affected party. (b) "Funds-trans…

§490:4A-502 Creditor process served on receiving bank; setoff by beneficiary's bank. (a) As used in this section, "creditor process" means levy, attachment, garnishment, notice of lien, sequestration, or similar process issued by or on behalf of a creditor or other claimant with …

§490:4A-503 Injunction or restraining order with respect to funds transfer. For proper cause and in compliance with applicable law, a court may restrain (i) a person from issuing a payment order to initiate a funds transfer, (ii) an originator's bank from executing the payment or…

§490:4A-504 Order in which items and payment orders may be charged to account; order of withdrawals from account. (a) If a receiving bank has received more than one payment order of the sender or one or more payment orders and other items that are payable from the sender's accoun…

§490:4A-505 Preclusion of objection to debit of customer's account. 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 …

§490:4A-506 Rate of interest. (a) If, under this article, a receiving bank is obliged to pay interest with respect to a payment order issued to the bank, the amount payable may be determined (i) by agreement of the sender and receiving bank, or (ii) by a funds-transfer system rul…

§490:4A-507 Choice of law. (a) The following rules apply unless the affected parties otherwise agree or subsection (c) applies: (b) If the parties described in each paragraph of subsection (a) have made an agreement selecting the law of a particular jurisdiction to govern rights …

§490:5-101 Short title. This article may be cited as Uniform Commercial Code--Letters of Credit. [L 1996, c 39, pt of §1]

§490:5-102 Definitions. (a) As used in this article: (b) Definitions in other articles applying to this article and the sections in which they appear are: "Accept" or "Acceptance". Section 490:3-409. "Value". Sections 490:3-303, 490:4-211. (c) Article 1 contains certain additiona…

§490:5-103 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 dif…

§490:5-104 Formal requirements. A letter of credit, confirmation, advice, transfer, amendment, or cancellation may be issued in any form that is a signed record. [L 1996, c 39, pt of §1; am L 2023, c 132, §26]

§490:5-105 Consideration. Consideration is not required to issue, amend, transfer, or cancel a letter of credit, advice, or confirmation. [L 1996, c 39, pt of §1]

§490:5-106 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 cred…

§490:5-107 Confirmer, nominated person, and advisor. (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…

§490:5-108 Issuer's rights and obligations. (a) Except as otherwise provided in section 490:5-109, 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…

§490:5-109 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 frau…

§490:5-110 Warranties. (a) If its presentation is honored, the beneficiary warrants: (b) The warranties in subsection (a) are in addition to warranties arising under articles 3, 4, 7, and 8 because of the presentation or transfer of documents covered by any of those articles. [L …

§490:5-111 Remedies. (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 subje…

§490:5-112 Transfer of letter of credit. (a) Except as otherwise provided in section 490:5-113, 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…

§490:5-113 Transfer by operation of law. (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 beneficia…

§490:5-114 Assignment of proceeds. (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 n…

§490:5-115 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 …

§490:5-116 Choice of law and forum. (a) The liability of an issuer, nominated person, or adviser for action or omission shall be governed by the law of the jurisdiction chosen by an agreement in the form of a record signed by the affected parties or by a provision in the person's…

§490:5-117 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 beneficia…

[§490:5-118] Security interest of issuer or nominated person. (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 an…

§490:7-101 Short title. This article shall be known and may be cited as Uniform Commercial Code--Documents of Title. [L 2004, c 163, pt of §1]

§490:7-102 Definitions and index of definitions. (a) In this article, unless the context otherwise requires: "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. "Carrier" m…

§490:7-103 Relation of article to treaty or statute. (a) This article 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 article does not modify or repeal an…

§490:7-104 Negotiable and nonnegotiable document of title. (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 descr…

§490:7-105 Reissuance in alternative medium. (a) Upon 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: (b) Upon issuance of a tangible d…

§490:7-106 Control of electronic document of title. (a) A person shall be deemed to have 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…

PART 2. WAREHOUSE RECEIPTS: SPECIAL PROVISIONS §490:7-201 Person that may issue a warehouse receipt; storage under bond. (a) A warehouse receipt may be issued by any warehouse. (b) If goods, including distilled spirits and agricultural commodities, are stored under a statute requ…

§490:7-202 Form of warehouse receipt; effect of omission. (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: (c) A warehouse…