§ 26-1-5.1-118 — Security interest of issuer or nominated person

Indiana § 26-1-5.1-118

• Jurisdiction: Indiana
• Title 26: COMMERCIAL LAW
• Art. 1: UNIFORM COMMERCIAL CODE
• Ch. 5.1: 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),
the security interest continues and is subject to IC 26-1-9.1, but:
(1) a security agreement is not necessary to make the security
interest enforceable under IC 26-1-9.1-203(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

As added by P.L.57-2000, SEC.32.