§ 41-05-18 — (5-118) Security interest of issuer or nominated person

1. 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.
2. 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 1, the security interest continues and is
subject to chapter 41-09, but:
a. A security agreement is not necessary to make the security interest enforceable
under subdivision c of subsection 2 of section 41-09-13;
b. If the document is presented in a medium other than a written or other tangible
medium, the security interest is perfected; and
c. 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.