§ 41-05-03 — (5-103) Scope

1. This chapter applies to letters of credit and to certain rights and obligations arising out
of transactions involving letters of credit.
2. The statement of a rule in this chapter 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 this chapter.
3. With the exception of this subsection, subsections 1 and 4 of this section,
subdivisions i and j of subsection 1 of section 41-05-02, subsection 4 of section
41-05-06, and subsection 4 of section 41-05-14, and except to the extent prohibited
under section 41-01-16 and subsection 4 of section 41-05-17, the effect of this chapter
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 this chapter.
4. 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.