§ 4-5-117.5 — Security interest of issuer or nominated person

Colorado § 4-5-117.5

• Jurisdiction: Colorado
• Title 04: Uniform
• Art.: Letters of Credit

Text

(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 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 (a) of this section, the security
interest continues and is subject to article 9 of this title, but:

(1) A security agreement is not necessary to make the security interest
enforceable under section 4-9-203 (b)(3);

(2) If the document is presented in a medium other than a written or other
tangible medium, the security interest is perfected; and

(3) 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
the document.

Legislative History

Source: L. 2001: Entire section added, p. 1441, � 28, effective July 1.