1. 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.
2. So long as and to the extent that an issuer or nominated person has not been reimbursed
or has not otherwise recovered the value given with respect to a security interest
in a document under subsection 1, the security interest continues and is subject to
Article 9, but:
b. if the document is presented in a medium other than a written or other tangible
medium, the security interest is perfected; and
c. if the document is presented in a written or other tangible medium and is not a
certificated security, chattel paper, a document of title, an instrument, or a letter
of credit, the security interest is perfected and has priority over a conflicting
security interest in the document so long as the debtor does not have possession of
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
Was this helpful?
Welcome to FindLaw's Cases & Codes
A free source of state and federal court opinions, state laws, and the United States Code. For more information about the legal concepts addressed by these cases and statutes, visit FindLaw's Learn About the Law.