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Can you summarize CORS 4-5-101?
LETTERS OF CREDIT > Short title.
Short Summary
This legal document, known as the Uniform Commercial Code - Letters of Credit, governs the use and legal nature of letters of credit in commercial transactions. It aims to provide a theoretical framework for the development of letters of credit while preserving procedural flexibility. The document defines the unique characteristics of letters of credit and distinguishes them from other forms of assurance, contracts, and fiduciary engagements. It emphasizes the need for courts to interpret the terms of this article in a manner consistent with customs and expectations of the international banking and mercantile community. The document also acknowledges the influence of international conventions and trade practices, such as the Uniform Customs and Practice, on letters of credit. Additionally, it mentions that other bodies of law, including federal bankruptcy law and regulations of the Federal Reserve Board and the Comptroller of the Currency, may apply to letters of credit in specific circumstances. However, these laws are beyond the scope of this document. Overall, the Uniform Commercial Code - Letters of Credit provides a legal framework for the use and enforcement of letters of credit in commercial transactions.
Whom does it apply to?
Entities involved in letters of credit transactions, including banks, applicants, beneficiaries, and other parties
What does it govern?
Uniform Commercial Code - Letters of Credit
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Colorado