Louisiana § 10:5-118 Security interest of issuer or nominated person

Louisiana Statutes

§ 10:5-118 — Security interest of issuer or nominated person

Louisiana § 10:5-118

Title 10Commercial Laws

This text of Louisiana § 10:5-118 (Security interest of issuer or nominated person) is published on Counsel Stack Legal Research, covering Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

La. Stat. Ann. § 10:5-118 (2026).

Text

(a)An issuer or nominated person has a security interest in a document presented under a letter of credit and any identifiable proceeds of the collateral to the extent that the issuer or nominated person honors or gives value for the presentation.

(b)Subject to subsection (c), as 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 under subsection (a), the security interest continues and is subject to Chapter 9, but:

(1)a security agreement is not necessary to make the security interest enforceable under R.S. 10:9-203(b)(3); and

(2)the security interest is perfected and has priority over conflicting security interests in the collateral or its proceeds.

(c)A security inte

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(a) An issuer or nominated person has a security interest in a document presented under a letter of credit and any identifiable proceeds of the collateral to the extent that the issuer or nominated person honors or gives value for the presentation.
(b) Subject to subsection (c), as 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 under subsection (a), the security interest continues and is subject to Chapter 9, but:
(1) a security agreement is not necessary to make the security interest enforceable under R.S. 10:9-203(b)(3); and
(2) the security interest is perfected and has priority over conflicting security interests in the collateral or its proceeds.
(c) A security interest that arises under this section is subject to the rights of a subsequent purchaser under R.S. 10:9-330 or 9-331 or a transferee under R.S. 10:9-332.