70A-5-118 - Security interest of issuer or nominated person.
70A-5-118. Security interest of issuer or nominated person.
(1) An issuer or nominated person has a security interest in a document presented under aletter of credit to the extent that the issuer or nominated person honors or gives value for thepresentation.
(2) So long as and to the extent that an issuer or nominated person has not beenreimbursed or has not otherwise recovered the value given with respect to a security interest in adocument under Subsection (1), the security interest continues and is subject to Chapter 9a, but:
(a) a security agreement is not necessary to make the security interest enforceable underSubsection 70A-9a-203(2)(c);
(b) if the document is presented in a medium other than a written or other tangiblemedium, the security interest is perfected; and
(c) if the document is presented in a written or other tangible medium and is not acertificated security, chattel paper, a document of title, an instrument, or a letter of credit, thesecurity interest is perfected and has priority over a conflicting security interest in the documentso long as the debtor does not have possession of the document.
Repealed and Re-enacted by Chapter 252, 2000 General Session