Title 12A, Title 12A: COMMERCIAL TRANSACTIONS

12A:5-105 Consideration. 12A:5-105. Consideration. Consideration is not required to issue, amend, transfer, or cancel a letter of credit, advice, or confirmation. L.1997,c.395,s.1.

12A:5-106 Issuance, amendment, cancellation, and duration. 12A: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 r…

12A:5-107 Confirmer, nominated person, and adviser. 12A: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 aga…

12A:5-108 Issuer's rights and obligations. 12A:5-108. Issuer's Rights and Obligations. a. Except as otherwise provided in 12A:5-109, 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…

12A:5-109 Fraud and forgery. 12A: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 woul…

12A:5-110 Warranties. 12A: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 subsection a. of 12A:5-109; and…

12A:5-111 Remedies. 12A: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 amoun…

12A:5-112 Transfer of letter of credit. 12A:5-112. Transfer of Letter of Credit. a. Except as otherwise provided in 12A: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 m…

12A:5-113 Transfer by operation of law. 12A: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 su…

12A:5-114 Assignment of proceeds. 12A: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 …

12A:5-115 Statute of limitations. 12A:5-115. Statute of Limitations. An action to enforce a right or obligation arising under this chapter 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, w…

12A:5-116 Choice of law and forum. 12A: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…

12A:5-117 Subrogation of issuer, applicant, and nominated person. 12A: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 sec…

12A:5-118. Security interest of issuer or nominated person 15. 12A: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 h…