§ 26-1-5.1-103 — Applicability to IC 26-1-8.1; ability to vary by agreement; independence of rights and obligations under letter of credit

Indiana § 26-1-5.1-103

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

Text

(a) IC 26-1-8.1 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 IC 26-1-5.1 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 IC 26-1-5.1.
(c) With the exception of this subsection, subsections (a) and (d), IC 26-1-5.1-102(a)(9) and IC 26-1-5.1-102(a)(10), IC 26-1-5.1-106(d),
and IC 26-1-5.1-114(d), and except to the extent prohibited in IC 26-1-1-102(3) and IC 26-1-5.1-117(d), the effect of IC 26-1-5.1 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 IC 26-1-5.1.
(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

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