§ 62A.5-118. Security interest of issuer or nominated person
(a) 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) 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) of this section, the security interest continues and is subject to Article 9, but:
(1) A security agreement is not necessary to make the security interest enforceable under RCW 62A.9A-203(b)(3);
(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.
[2000 c 250 § 2.]
Notes:
Effective date -- 2000 c 250: See RCW 62A.9A-701.
Sections: Previous 62A.5-104 62A.5-105 62A.5-106 62A.5-107 62A.5-108 62A.5-109 62A.5-110 62A.5-111 62A.5-112 62A.5-113 62A.5-114 62A.5-115 62A.5-116 62A.5-117 62A.5-118
Last modified: April 7, 2009