§ 34.1-5-108 — Issuer's rights and obligations

Wyoming § 34.1-5-108

• Jurisdiction: Wyoming
• Title 34.1: Uniform Commercial Code
• Art. 4: BANK DEPOSITS AND COLLECTIONS

Text

(a) Except as otherwise provided in W.S. 34.1-5-109, an
issuer shall honor a presentation that, as determined by the
standard practice referred to in subsection (e) of this section,
appears on its face strictly to comply with the terms and
conditions of the letter of credit. Except as otherwise
provided in W.S. 34.1-5-113 and unless otherwise agreed with the
applicant, an issuer shall dishonor a presentation that does not
appear so to comply.
(b) An issuer has a reasonable time after presentation,
but not beyond the end of the seventh business day of the issuer
after the day of its receipt of documents:
(i) To honor;
(ii) If the letter of credit provides for honor to be
completed more than seven (7) business days after presentation,
to accept a draft or incur a deferred obligation; or
(iii) To give notice to the presenter of
discrepancies in the presentation.
(c) Except as otherwise provided in subsection (d) of this
section, an issuer is precluded from asserting as a basis for
dishonor any discrepancy if timely notice is not given, or any
discrepancy not stated in the notice if timely notice is given.
(d) Failure to give the notice specified in subsection (b)
of this section or to mention fraud, forgery, or expiration in
the notice does not preclude the issuer from asserting as a
basis for dishonor, fraud or forgery as described in W.S.
34.1-5-109(a) or expiration of the letter of credit before
presentation.
(e) An issuer shall observe standard practice of financial
institutions that regularly issue letters of credit. The court
shall offer the parties a reasonable opportunity to present
evidence of the standard practice.
(f) An issuer is not responsible for:
(i) The performance or nonperformance of the
underlying contract, arrangement or transaction;
(ii) An act or omission of others; or
(iii) Observance or knowledge of the usage of a
particular trade other than the standard practice referred to in
subsection (e) of this section.
(g) If an undertaking constituting a letter of credit
under W.S. 34.1-5-102(a)(x) contains nondocumentary conditions,
an issuer shall disregard the nondocumentary conditions and
treat them as if they were not stated.
(h) An issuer that has dishonored a presentation shall
return the documents or hold them at the disposal of, and send
advice to that effect to, the presenter.
(j) An issuer that has honored a presentation as permitted
or required by this article:
(i) Is entitled to be reimbursed by the applicant in
immediately available funds not later than the date of its
payment of funds;
(ii) Takes the documents free of claims of the
beneficiary or presenter;
(iii) Is precluded from asserting a right of recourse
on a draft under W.S. 34.1-3-414 and 34.1-3-415;
(iv) Except as otherwise provided in W.S. 34.1-5-110
and 34.1-5-117, is precluded from restitution of money paid or
other value given by mistake to the extent the mistake concerns
discrepancies in the documents or tender which are apparent on
the face of the presentation; and
(v) Is discharged to the extent of its performance
under the letter of credit unless the issuer honored a
presentation in which a required signature of a beneficiary was
forged.