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§ 5-115. Statute of limitations

West's Annotated Code of MarylandCommercial Law

West's Annotated Code of Maryland
Commercial Law
Title 5. Letters of Credit (Refs & Annos)
MD Code, Commercial Law, § 5-115
§ 5-115. Statute of limitations
An action to enforce a right or obligation arising under this article must be commenced within 1 year after the expiration date of the relevant letter of credit or 1 year after the cause of action accrues, whichever occurs later. A cause of action accrues when the breach occurs, regardless of the aggrieved party's lack of knowledge of the breach.

Credits

Added by Acts 1997, c. 652, § 2, eff. Oct. 1, 1997.

Editors' Notes

UNIFORM COMMERCIAL CODE COMMENT
1. This section is based upon Sections 4-111 and 2-725(2).
2. This section applies to all claims for which there are remedies under Section 5-111 and to other claims made under this article, such as claims for breach of warranty under Section 5-110. Because it covers all claims under Section 5-111, the statute of limitations applies not only to wrongful dishonor claims against the issuer but also to claims between the issuer and the applicant arising from the reimbursement agreement. These might be for reimbursement (issuer v. applicant) or for breach of the reimbursement contract by wrongful honor (applicant v. issuer).
3. The statute of limitations, like the rest of the statute, applies only to a letter of credit issued on or after the effective date and only to transactions, events, obligations, or duties arising out of or associated with such a letter. If a letter of credit was issued before the effective date and an obligation on that letter of credit was breached after the effective date, the complaining party could bring its suit within the time that would have been permitted prior to the adoption of Section 5-115 and would not be limited by the terms of Section 5-115.
HISTORICAL AND STATUTORY NOTES
1997 Legislation
For application provisions of Acts 1997, c. 652, §§ 3 and 4, see Historical and Statutory Notes following Commercial Law § 5-101.
MD Code, Commercial Law, § 5-115, MD COML § 5-115
Current through all legislation from the 2019 Regular Session of the General Assembly.
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