8.5A-102 - A-102. Definitions.
§ 8.5A-102. Definitions.
(a) In this title:
(1) "Adviser" means a person who, at the request of the issuer, aconfirmer, or another adviser, notifies or requests another adviser to notifythe beneficiary that a letter of credit has been issued, confirmed, oramended.
(2) "Applicant" means a person at whose request or for whose account aletter of credit is issued. The term includes a person who requests an issuerto issue a letter of credit on behalf of another if the person making therequest undertakes an obligation to reimburse the issuer.
(3) "Beneficiary" means a person who under the terms of a letter of creditis entitled to have its complying presentation honored. The term includes aperson to whom drawing rights have been transferred under a transferableletter of credit.
(4) "Confirmer" means a nominated person who undertakes, at the request orwith the consent of the issuer, to honor a presentation under a letter ofcredit issued by another.
(5) "Dishonor" of a letter of credit means failure timely to honor or totake an interim action, such as acceptance of a draft, that may be requiredby the letter of credit.
(6) "Document" means a draft or other demand, document of title, investmentsecurity, certificate, invoice, or other record, statement, or representationof fact, law, right, or opinion (i) which is presented in a written or othermedium permitted by the letter of credit or, unless prohibited by the letterof credit, by the standard practice referred to in § 8.5A-108(e) and (ii)which is capable of being examined for compliance with the terms andconditions of the letter of credit. A document may not be oral.
(7) "Good faith" means honesty in fact in the conduct or transactionconcerned.
(8) "Honor" of a letter of credit means performance of the issuer'sundertaking in the letter of credit to pay or deliver an item of value.Unless the letter of credit otherwise provides, "honor" occurs:
(i) upon payment;
(ii) if the letter of credit provides for acceptance, upon acceptance of adraft and, at maturity, its payment; or
(iii) if the letter of credit provides for incurring a deferred obligation,upon incurring the obligation and, at maturity, its performance.
(9) "Issuer" means a bank or other person that issues a letter of credit,but does not include an individual who makes an engagement for personal,family, or household purposes.
(10) "Letter of credit" means a definite undertaking that satisfies therequirements of § 8.5A-104 by an issuer to a beneficiary at the request orfor the account of an applicant or, in the case of a financial institution,to itself or for its own account, to honor a documentary presentation bypayment or delivery of an item of value.
(11) "Nominated person" means a person whom the issuer (i) designates orauthorizes to pay, accept, negotiate, or otherwise give value under a letterof credit and (ii) undertakes by agreement or custom and practice toreimburse.
(12) "Presentation" means delivery of a document to an issuer or nominatedperson for honor or giving of value under a letter of credit.
(13) "Presenter" means a person making a presentation as or on behalf of abeneficiary or nominated person.
(14) "Record" means information that is inscribed on a tangible medium, orthat is stored in an electronic or other medium and is retrievable inperceivable form.
(15) "Successor of a beneficiary" means a person who succeeds tosubstantially all of the rights of a beneficiary by operation of law,including a corporation with or into which the beneficiary has been merged orconsolidated, an administrator, executor, personal representative, trustee inbankruptcy, debtor in possession, liquidator, and receiver.
(b) Definitions in other titles applying to this title and the sections inwhich they appear are:
"Accept" or "Acceptance" - § 8.3A-409.
"Value" - §§ 8.3A-303 and 8.4A-211.
(c) Title 8.1A contains certain additional general definitions and principlesof construction and interpretation applicable throughout this title.
(1997, c. 343; 2003, c. 353.)