Code of Alabama - Title 7: Commercial Code - Article 5 - Letters of Credit

• Section 7-5-101 Short title
  This article may be cited as Uniform Commercial Code - Letters of Credit.
• Section 7-5-102 Definitions
  (a) In this article: (1) "Adviser" means a person who, at the request of the issuer, a confirmer, or another adviser, notifies, or requests another...
• Section 7-5-103 Scope
  (a) This article applies to letters of credit and to certain rights and obligations arising out of transactions involving letters of credit. (b) The statement...
• Section 7-5-104 Formal requirements
  A letter of credit, confirmation, advice, transfer, amendment, or cancellation may be issued in any form that is a record and is authenticated (i) by...
• Section 7-5-105 Consideration
  Consideration is not required to issue, amend, transfer, or cancel a letter of credit, advice, or confirmation.
• Section 7-5-106 Issuance, amendment, cancellation, and duration
  (a) A letter of credit is issued and becomes enforceable according to its terms against the issuer when the issuer sends or otherwise transmits it...
• Section 7-5-107 Confirmer, nominated person, and adviser
  (a) A confirmer is directly obligated on a letter of credit and has the rights and obligations of an issuer to the extent of its...
• Section 7-5-108 Issuer's rights and obligations
  (a) Except as otherwise provided in Section 7-5-109, an issuer shall honor a presentation that, as determined by the standard practice referred to in subsection...
• Section 7-5-109 Fraud and forgery
  (a) If a presentation is made that appears on its face strictly to comply with the terms and conditions of the letter of credit, but...
• Section 7-5-110 Warranties
  (a) If its presentation is honored, the beneficiary warrants: (1) to the issuer, any other person to whom presentation is made, and the applicant that...
• Section 7-5-111 Remedies
  (a) If an issuer wrongfully dishonors or repudiates its obligation to pay money under a letter of credit before presentation, the beneficiary, successor, or nominated...
• Section 7-5-112 Transfer of letter of credit
  (a) Except as otherwise provided in Section 7-5-113, unless a letter of credit provides that it is transferable, the right of a beneficiary to draw...
• Section 7-5-113 Transfer by operation of law
  (a) A successor of a beneficiary may consent to amendments, sign and present documents, and receive payment or other items of value in the name...
• Section 7-5-114 Assignment of proceeds
  (a) In this section, "proceeds of a letter of credit" means the cash, check, accepted draft, or other item of value paid or delivered upon...
• Section 7-5-115 Statute of limitations
  An action to enforce a right or obligation arising under this article must be commenced within two years after the expiration date of the relevant...
• Section 7-5-116 Choice of law and forum
  (a) The liability of an issuer, nominated person, or adviser for action or omission is governed by the law of the jurisdiction chosen by an...
• Section 7-5-117 Subrogation of issuer, applicant, and nominated person
  (a) An issuer that honors a beneficiary's presentation is subrogated to the rights of the beneficiary to the same extent as if the issuer were...
• Section 7-5-118 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...

Last modified: May 3, 2021