70A-5-110 - Warranties.
70A-5-110. Warranties.
(1) If its presentation is honored, the beneficiary warrants:
(a) to the issuer, any other person to whom presentation is made, and the applicant thatthere is no fraud or forgery of the kind described in Subsection 70A-5-109(1); and
(b) to the applicant that the drawing does not violate any agreement between theapplicant and beneficiary or any other agreement intended by them to be augmented by the letterof credit.
(2) The warranties in Subsection (1) are in addition to warranties arising under Title 70A,Chapter 3, Uniform Commercial Code - Negotiable Instruments, Chapter 4, UniformCommercial Code - Bank Deposits and Collections, Chapter 7a, Uniform Commercial Code -Documents of Title, and Chapter 8, Uniform Commercial Code - Investment Securities, becauseof the presentation or transfer of documents covered by any of those chapters.
Amended by Chapter 42, 2006 General Session