§ 25-5-118. Security interest of issuer or nominated person.
§25‑5‑118. Security interest of issuer or nominated person.
(a) An issuer ornominated person has a security interest in a document presented under a letterof credit to the extent that the issuer or nominated person honors or givesvalue for the presentation.
(b) So long as and tothe extent that an issuer or nominated person has not been reimbursed or hasnot otherwise recovered the value given with respect to a security interest ina document under subsection (a) of this section, the security interest continuesand is subject to Article 9 of this Chapter, but:
(1) A security agreementis not necessary to make the security interest enforceable under G.S. 25‑9‑203(b)(3);
(2) If the document ispresented in a medium other than a written or other tangible medium, thesecurity interest is perfected; and
(3) If the document ispresented in a written or other tangible medium and is not a certificatedsecurity, chattel paper, a document of title, an instrument, or a letter ofcredit, the security interest is perfected and has priority over a conflictingsecurity interest in the document so long as the debtor does not havepossession of the document. (2000‑169, s. 18.)