§ 4-5-103 — 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 different rule to a situation not provided for, or
to a person not specified, in this article.

(c) With the exception of this subsection (c), subsections (a) and (d) of this
section, sections 4-5-102 (a)(9) and (10), 4-5-106 (d), and 4-5-114 (d), and except to
the extent prohibited in sections 4-1-302 and 4-5-117 (d), the effect of this article
may be varied by agreement or by a provision stated or incorporated by reference in
an undertaking. A term in an agreement or undertaking generally excusing liability
or generally limiting remedies for failure to perform obligations is not sufficient to
vary obligations prescribed by this article.

(d) Rights and obligations of an issuer to a beneficiary or a nominated person
under a letter of credit are independent of the existence, performance, or
nonperformance of a contract or arrangement out of which the letter of credit
arises or which underlies it, including contracts or arrangements between the issuer
and the applicant and between the applicant and the beneficiary.

Legislative History

Source: L. 96: Entire article R&RE, p. 193, � 1, effective July 1. L. 2006: (c) amended, p. 498, � 31, effective September 1.