Indiana § 26-1-5.1-111 Remedies for wrongful dishonor, repudiation, or breach of obligation

Indiana Statutes

§ 26-1-5.1-111 — Remedies for wrongful dishonor, repudiation, or breach of obligation

Indiana § 26-1-5.1-111

Title 26COMMERCIAL LAW

Art. 1UNIFORM COMMERCIAL CODE

Ch. 5.1Letters of Credit

This text of Indiana § 26-1-5.1-111 (Remedies for wrongful dishonor, repudiation, or breach of obligation) is published on Counsel Stack Legal Research, covering Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ind. Code § 26-1-5.1-111 (2026).

Text

(a)If an issuer wrongfully dishonors or repudiates its obligation to pay money under a letter of credit before presentation, the beneficiary, successor, or nominated person presenting on its own behalf may recover from the issuer the amount that is the subject of the dishonor or repudiation. If the issuer's obligation under the letter of credit is not for the payment of money, the claimant may obtain specific performance or, at the claimant's election, recover an amount equal to the value of performance from the issuer. In either case, the claimant may also recover incidental but not consequential damages. The claimant is not obligated to take action to avoid damages that might be due from the issuer under this subsection. If, although not obligated to do so, the claimant avoids damages,

Free access — add to your briefcase to read the full text and ask questions with AI

(a) If an issuer wrongfully dishonors or
repudiates its obligation to pay money under a letter of credit before
presentation, the beneficiary, successor, or nominated person
presenting on its own behalf may recover from the issuer the amount
that is the subject of the dishonor or repudiation. If the issuer's
obligation under the letter of credit is not for the payment of money, the
claimant may obtain specific performance or, at the claimant's election,
recover an amount equal to the value of performance from the issuer.
In either case, the claimant may also recover incidental but not
consequential damages. The claimant is not obligated to take action to
avoid damages that might be due from the issuer under this subsection.
If, although not obligated to do so, the claimant avoids damages, the
claimant's recovery from the issuer must be reduced by the amount of
damages avoided. The issuer has the burden of proving the amount of
damages avoided. In the case of repudiation the claimant need not
present any document.
(b) If an issuer wrongfully dishonors a draft or demand presented
under a letter of credit or honors a draft or demand in breach of its
obligation to the applicant, the applicant may recover damages
resulting from the breach, including incidental but not consequential
damages, less any amount saved as a result of the breach.
(c) If an adviser or nominated person other than a confirmer
breaches an obligation under IC 26-1-5.1 or an issuer breaches an
obligation not covered in subsection (a) or (b), a person to whom the
obligation is owed may recover damages resulting from the breach,
including incidental but not consequential damages, less any amount
saved as a result of the breach. To the extent of the confirmation, a
confirmer has the liability of an issuer specified in this subsection and
subsections (a) and (b).
(d) An issuer, nominated person, or adviser who is found liable
under subsection (a), (b), or (c) shall pay interest on the amount owed
thereunder from the date of wrongful dishonor or other appropriate
date.
(e) Reasonable attorney's fees and other expenses of litigation must
be awarded to the prevailing party in an action in which a remedy is
sought under IC 26-1-5.1.
(f) Damages that would otherwise be payable by a party for breach
of an obligation under IC 26-1-5.1 may be liquidated by agreement or
undertaking, but only in an amount or by a formula that is reasonable
in light of the harm anticipated.