§ 26-1-5.1-102 — Definitions

Indiana § 26-1-5.1-102

• Jurisdiction: Indiana
• Title 26: COMMERCIAL LAW
• Art. 1: UNIFORM COMMERCIAL CODE
• Ch. 5.1: Letters of Credit

Text

(a) In IC 26-1-5.1:
(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 which
is:
(i) 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 IC 26-1-5.1-108(e); and
(ii) 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 IC 26-1-5.1-104 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, an executor,
a personal representative, a trustee in bankruptcy, a debtor in
possession, a liquidator, and a receiver.
(b) Other definitions applying to IC 26-1-5.1 and the sections in
which they appear are:
"Accept" or "Acceptance". IC 26-1-3.1-409.
"Value". IC 26-1-3.1-303 and IC 26-1-4-211.
(c) IC 26-1 contains certain additional general definitions and
principles of construction and interpretation applicable throughout IC 26-1-5.1.

Legislative History

As added by P.L.183-1996, SEC.4.