Title XXVI, TRADE AND COMMERCE

400.4A-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 400.4A-404(a), occurs when and to the extent (i) the beneficiary is notified of the r…

400.4A-406. Payment by originator to beneficiary — discharge of underlying obligation. — (a) Subject to section 400.4A-211(e) and section 400.4A-405(d) and section 400.4A-405(e), the originator of a funds transfer pays the beneficiary of the originator's payment order (i) at the …

400.4A-501. Variation by agreement and effect of funds — transfer system rule. — (a) Except as otherwise provided in this Article, the rights and obligations of a party to a funds transfer may be varied by agreement of the affected party. (b) "Funds-transfer system rule" means a …

400.4A-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 wi…

400.4A-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 …

400.4A-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 acc…

400.4A-505. Preclusion of objection to debt 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…

400.4A-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 r…

400.4A-507. Choice of law. — (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 r…

400.5-101. Short title. — This article shall be known and may be cited as "Uniform Commercial Code—Letters of Credit". ­­-------- (L. 1963 p. 503 § 5-101)

400.5-102. 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) "Applic…

400.5-103. 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 di…

400.5-104. 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 re…

400.5-105. Consideration. — Consideration is not required to issue, amend, transfer or cancel a letter of credit, advice or confirmation. ­­-------- (L. 1963 p. 503 § 5-105, A.L. 1997 S.B. 6)

400.5-106. 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 cre…

400.5-107. Confirmer, nominated person and adviser. — (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 issue…

400.5-108. Issuer's rights and obligations. — (a) Except as otherwise provided in section 400.5-109, 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 conditio…

400.5-109. 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 fra…

400.5-110. Warranties. — (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 400.5-109(a); and (2) To the applicant tha…

400.5-111. Remedies and damages for wrongful dishonor or breach of obligation. — (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 beha…

400.5-112. Transfer of letter of credit. — (a) Except as otherwise provided in section 400.5-113, 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) Ev…

400.5-113. Successor of beneficiary, rights. — (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 bene…

400.5-114. Proceeds of letter of credit, definition, assignment. — (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 le…

400.5-115. 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 o…

400.5-116. Choice of law and forum. — (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 mann…

400.5-117. 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 benefici…

400.5-118. Security interest in a document. — (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 to the extent …

400.7-101. Short title. — This article shall be known and may be cited as "Uniform Commercial Code — Documents of Title". ­­-------- (L. 1963 p. 503 § 7-101)

400.7-102. Definitions and index of definitions. — (a) In this article, 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) "…

400.7-103. Relation of article to treaty, statute, tariff, classification or regulation. — (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) Thi…

400.7-104. Negotiable and nonnegotiable warehouse receipt, bill of lading or other 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.…

400.7-105. Requests for issuance of tangible or electronic documents of title, effect. — (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 do…

400.7-106. Control of electronic document of title. — (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 docume…

400.7-201. Who may issue a warehouse receipt — storage under government 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 requiring a bond against withdrawal or a lice…

400.7-202. Form of warehouse receipt — essential terms — optional terms. — (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…

400.7-203. Liability for nonreceipt or misdescription. — A party to or purchaser for value in good faith of a document of title, other than a bill of lading, that relies upon the description of the goods in the document may recover from the issuer damages caused by the nonreceipt…

400.7-204. Duty of care — contractual limitation of warehouseman's liability. — (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 c…

400.7-205. Title under warehouse receipt defeated in certain cases. — A buyer in ordinary course of business of fungible goods sold and delivered by a warehouse that is also in the business of buying and selling such goods takes the goods free of any claim under a warehouse recei…

400.7-206. Termination of storage at warehouseman's option. — (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 war…

400.7-207. Goods must be kept separate — fungible goods. — (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 fu…

400.7-208. Altered warehouse receipts. — 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 alterati…

400.7-209. Lien of warehouse. — (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, insuran…

400.7-210. Enforcement of warehouse's lien. — (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 notif…

400.7-301. Liability for nonreceipt or misdescription — "said to contain" — "shipper's load and count" — improper handling. — (a) A consignee of a nonnegotiable bill of lading which has given value in good faith, or a holder to which a negotiable bill has been duly negotiated, re…

400.7-302. Through bills of lading and similar documents. — (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 reco…

400.7-303. Diversion — reconsignment — change of instructions. — (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 misdeliver…