§ 34.1-5-117 — Subrogation of issuer, applicant, and nominated person

Wyoming § 34.1-5-117

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

Text

(a) An issuer that honors a beneficiary's presentation is
subrogated to the rights of the beneficiary to the same extent
as if the issuer were a secondary obligor of the underlying
obligation owed to the beneficiary and of the applicant to the
same extent as if the issuer were the secondary obligor of the
underlying obligation owed to the applicant.
(b) An applicant that reimburses an issuer is subrogated
to the rights of the issuer against any beneficiary, presenter,
or nominated person to the same extent as if the applicant were
the secondary obligor of the obligations owed to the issuer and
has the rights of subrogation of the issuer to the rights of the
beneficiary stated in subsection (a) of this section.
(c) A nominated person who pays or gives value against a
draft or demand presented under a letter of credit is subrogated
to the rights of:
(i) The issuer against the applicant to the same
extent as if the nominated person were a secondary obligor of
the obligation owed to the issuer by the applicant;
(ii) The beneficiary to the same extent as if the
nominated person were a secondary obligor of the underlying
obligation owed to the beneficiary; and
(iii) The applicant to same extent as if the
nominated person were a secondary obligor of the underlying
obligation owed to the applicant.
(d) Notwithstanding any agreement or term to the contrary,
the rights of subrogation stated in subsections (a) and (b) of
this section do not arise until the issuer honors the letter of
credit or otherwise pays and the rights in subsection (c) of
this section do not arise until the nominated person pays or
otherwise gives value. Until then, the issuer, nominated
person, and the applicant do not derive under this section
present or prospective rights forming the basis of a claim,
defense, or excuse.