Title 28, COMMERCIAL TRANSACTIONS

28-4-616. Misdescription of intermediary bank or beneficiary’s bank. (1) This subsection applies to a payment order identifying an intermediary bank or the beneficiary’s bank only by an identifying number. (a) The receiving bank may rely on the number as the proper identification…

28-4-617. Acceptance of payment order. (1) Subject to subsection (4) of this section, a receiving bank other than the beneficiary’s bank accepts a payment order when it executes the order. (2) Subject to subsections (3) and (4) of this section, a beneficiary’s bank accepts a paym…

28-4-618. Rejection of payment order. (1) A payment order is rejected by the receiving bank by a notice of rejection transmitted to the sender orally, electronically, or in writing. A notice of rejection need not use any particular words and is sufficient if it indicates that the…

28-4-619. Cancellation and amendment of payment order. (1) A communication of the sender of a payment order cancelling or amending the order may be transmitted to the receiving bank orally, electronically, or in writing. If a security procedure is in effect between the sender and…

28-4-620. 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 t…

28-4-621. Execution and execution date. (1) 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 the beneficiary’s bank can be accepted but cannot be executed. …

28-4-622. Obligations of receiving bank in execution of payment order. (1) Except as provided in subsections (2) through (4) of this section, if the receiving bank accepts a payment order pursuant to section 28-4-617(1), the bank has the following obligations in executing the ord…

28-4-623. Erroneous execution of payment order. (1) A receiving bank that: (a) 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 (b) issues a payment order in execution of the sender’s order and then…

28-4-624. Duty of sender to report erroneously executed payment order. If the sender of a payment order that is erroneously executed as stated in section 28-4-623 receives notification from the receiving bank that the order was executed or that the sender’s account was debited wi…

28-4-625. Liability for late or improper execution or failure to execute payment order. (1) If a funds transfer is completed but execution of a payment order by the receiving bank in breach of the provisions of section 28-4-622 results in delay in payment to the beneficiary, the …

28-4-626. 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 the order is receiv…

28-4-627. Obligation of sender to pay receiving bank. (1) The provisions of this section are subject to the provisions of sections 28-4-613 and 28-4-615. (2) With respect to a payment order issued to the beneficiary’s bank, acceptance of the order by the bank obliges the sender t…

28-4-628. Payment by sender to receiving bank. (1) Payment of the sender’s obligation under section 28-4-627 to pay the receiving bank occurs as follows: (a) If the sender is a bank, payment occurs when the receiving bank receives final settlement of the obligation through a Fede…

28-4-629. Obligation of beneficiary’s bank to pay and give notice to beneficiary. (1) Subject to sections 28-4-619(5), 28-4-630(4) and (5), if a beneficiary’s bank accepts a payment order, the bank is obliged to pay the amount of the order to the beneficiary of the order. Payment…

28-4-630. Payment by beneficiary’s bank to beneficiary. (1) If the beneficiary’s bank credits an account of the beneficiary of a payment order, payment of the bank’s obligation under section 28-4-629(1) occurs when and to the extent: (a) the beneficiary is notified of the right t…

28-4-631. Payment by originator to beneficiary — Discharge of underlying obligation. (1) Subject to the provisions of sections 28-4-619(5), 28-4-630(4) and (5), the originator of a funds transfer pays the beneficiary of the originator’s payment order: (a) at the time a payment or…

28-4-632. Variation by agreement and effect of funds-transfer system rule. (1) Except as otherwise provided in this part, the rights and obligations of a party to a funds transfer may be varied by agreement of the affected party. (2) "Funds-transfer system rule" means a rule of a…

28-4-633. Creditor process served on receiving bank — Setoff by beneficiary’s bank. (1) 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 r…

28-4-634. Injunction or restraining order with respect to funds transfer. For proper cause and in compliance with applicable law, a court may restrain: (1) A person from issuing a payment order to initiate a funds transfer, (2) An originator’s bank from executing the payment orde…

28-4-635. Order in which items and payment orders may be charged to account — Order of withdrawals from account. (1) If a receiving bank has received more than one (1) payment order of the sender or one (1) or more payment orders and other items that are payable from the sender’s…

28-4-636. 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 id…

28-4-637. Rate of interest. (1) If, under this part, a receiving bank is obliged to pay interest with respect to a payment order issued to the bank, the amount payable may be determined: (a) by agreement of the sender and receiving bank, or (b) by a funds-transfer system rule if …

28-4-638. Choice of law. (1) The following rules apply unless the affected parties otherwise agree or the provisions of subsection (3) of this section apply: (a) The rights and obligations between the sender of a payment order and the receiving bank are governed by the law of the…

28-5-101. Short title. This chapter may be cited as "Uniform Commercial Code — Letters of Credit."

28-5-102. Definitions. (1) In this chapter: (a) "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. (b) "Applica…

28-5-103. Scope. (1) This chapter applies to letters of credit and to certain rights and obligations arising out of transactions involving letters of credit. (2) The statement of a rule in this chapter does not by itself require, imply, or negate application of the same or a diff…

28-5-104. 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 referr…

28-5-105. Consideration. Consideration is not required to issue, amend, transfer, or cancel a letter of credit, advice, or confirmation.

28-5-106. Issuance, amendment, cancellation, and duration. (1) 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 credi…

28-5-107. Confirmer, nominated person, and adviser. (1) 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 …

28-5-108. Issuer’s rights and obligations. (1) Except as otherwise provided in section 28-5-109, an issuer shall honor a presentation that, as determined by the standard practice referred to in subsection (5) of this section, appears on its face strictly to comply with the terms …

28-5-109. Fraud and forgery. (1) 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…

28-5-110. Warranties. (1) If its presentation is honored, the beneficiary warrants: (a) 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 28-5-109(1); and (b) to the applicant that th…

28-5-111. Remedies. (1) 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 subjec…

28-5-112. Transfer of letter of credit. (1) Except as otherwise provided in section 28-5-113, 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. (2) Even i…

28-5-113. Transfer by operation of law. (1) 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. (2) A successor of a beneficiar…

28-5-114. Assignment of proceeds. (1) 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 no…

28-5-115. Statute of limitations. An action to enforce a right or obligation arising under this chapter must be commenced within one (1) year after the expiration date of the relevant letter of credit or one (1) year after the cause of action accrues, whichever occurs later. A ca…

28-5-116. Choice of law and forum. (1) 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…

28-5-117. Subrogation of issuer, applicant, and nominated person. (1) 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 beneficiar…

28-5-118. Applicability. This act applies to a letter of credit that is issued on or after the effective date of this act. This act does not apply to a transaction, event, obligation, or duty arising out of or associated with a letter of credit that was issued before the effectiv…

28-5-119. Savings clause. A transaction arising out of or associated with a letter of credit that was issued before the effective date of this act and the rights, obligations, and interests flowing from that transaction are governed by any statute or other law amended or repealed…

28-5-120. 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 and t…

28-7-101. Short title. This chapter shall be known and may be cited as "Uniform Commercial Code – Documents of Title."

28-7-102. Definitions and index of definitions. (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) "Car…

28-7-103. Relation of chapter to treaty or statute. (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…