§ 4-5-102 — 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) Applicant means a person at whose request or for whose account a
letter of credit is issued. The term includes a person who requests an issuer to issue
a letter of credit on behalf of another if the person making the request undertakes
an obligation to reimburse the issuer.

(3) Beneficiary means a person who under the terms of a letter of credit is
entitled to have its complying presentation honored. The term includes a person to
whom drawing rights have been transferred under a transferable letter of credit.

(4) Confirmer means a nominated person who undertakes, at the request or
with the consent of the issuer, to honor a presentation under a letter of credit
issued by another.

(5) Dishonor of a letter of credit means failure timely to honor or to take an
interim action, such as acceptance of a draft, that may be required by the letter of
credit.

(6) Document means a draft or other demand, document of title,
investment security, certificate, invoice, or other record, statement, or
representation of fact, law, right, or opinion (i) which is presented in a written or
other medium permitted by the letter of credit or, unless prohibited by the letter of
credit, by the standard practice referred to in section 4-5-108 (e) and (ii) which is
capable of being examined for compliance with the terms and conditions of the
letter of credit. A document may not be oral.

(7) Good faith means honesty in fact in the conduct or transaction
concerned.

(8) Honor of a letter of credit means performance of the issuer's
undertaking in the letter of credit to pay or deliver an item of value. Unless the
letter of credit otherwise provides, honor occurs:

(i) Upon payment;

(ii) If the letter of credit provides for acceptance, upon acceptance of a draft
and, at maturity, its payment; or

(iii) If the letter of credit provides for incurring a deferred obligation, upon
incurring the obligation and, at maturity, its performance.

(9) Issuer means a bank or other person that issues a letter of credit, but
does not include an individual who makes an engagement for personal, family, or
household purposes.

(10) Letter of credit means a definite undertaking that satisfies the
requirements of section 4-5-104 by an issuer to a beneficiary at the request or for
the account of an applicant or, in the case of a financial institution, to itself or for its
own account, to honor a documentary presentation by payment or delivery of an
item of value.

(11) Nominated person means a person whom the issuer (i) designates or
authorizes to pay, accept, negotiate, or otherwise give value under a letter of credit
and (ii) undertakes by agreement or custom and practice to reimburse.

(12) Presentation means delivery of a document to an issuer or nominated
person for honor or giving of value under a letter of credit.

(13) Presenter means a person making a presentation as or on behalf of a
beneficiary or nominated person.

(14) Record means information that is inscribed on a tangible medium, or
that is stored in an electronic or other medium and is retrievable in perceivable
form.

(15) Successor of a beneficiary means a person who succeeds to
substantially all of the rights of a beneficiary by operation of law, including a
corporation with or into which the beneficiary has been merged or consolidated, an
administrator, executor, personal representative, trustee in bankruptcy, debtor in
possession, liquidator, and receiver.

(b) Definitions in other articles applying to this article and the sections in
which they appear are:

Accept or acceptanceSection 4-3-409

ValueSections 4-3-303, 4-4-211

(c) Article 1 of this title contains certain additional general definitions and
principles of construction and interpretation applicable throughout this article.

Legislative History

Source: L. 96: Entire article R&RE, p. 191, � 1, effective July 1.