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§ 5118. Security interest of issuer or nominated person

Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 13 Pa.C.S.A. Commercial CodeEffective: July 1, 2001

Purdon's Pennsylvania Statutes and Consolidated Statutes
Title 13 Pa.C.S.A. Commercial Code (Refs & Annos)
Division 5. Letters of Credit (Refs & Annos)
Chapter 51. Letters of Credit
Effective: July 1, 2001
13 Pa.C.S.A. § 5118
§ 5118. Security interest of issuer or nominated person
Currentness
(a) General rule.--An issuer or nominated person has a security interest in a document presented under a letter of credit to the extent that the issuer or nominated person honors or gives value for the presentation.
(b) Duration.--So long as and to the extent that an issuer or nominated person has not been reimbursed or has not otherwise recovered the value given with respect to a security interest in a document under subsection (a), the security interest continues and is subject to Division 9 (relating to secured transactions), but:
(1) a security agreement is not necessary to make the security interest enforceable under section 9203(b)(3) (relating to attachment and enforceability of security interest; proceeds; supporting obligations; formal requisites);
(2) if the document is presented in a medium other than a written or other tangible medium, the security interest is perfected; and
(3) if the document is presented in a written or other tangible medium and is not a certificated security, chattel paper, a document of title, an instrument or a letter of credit, the security interest is perfected and has priority over a conflicting security interest in the document so long as the debtor does not have possession of the document.

Credits

2001, June 8, P.L. 123, No. 18, § 13, effective July 1, 2001.
13 Pa.C.S.A. § 5118, PA ST 13 Pa.C.S.A. § 5118
Current through Act 11 of the 2024 Regular Session. Some statute sections may be more current, see credits for details.
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