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Can you summarize CORS 4-5-103?
LETTERS OF CREDIT > Scope.
Short Summary
This legal document, part of the Colorado Revised Statutes, falls under the Uniform Commercial Code and specifically governs letters of credit and the rights and obligations associated with such transactions. It applies to parties involved in these transactions, including issuers, beneficiaries, nominated persons, applicants, and advisers. The document clarifies that the rules outlined within it do not apply to secondary or accessory guarantees. It emphasizes the independence principle, stating that the rights and obligations of an issuer to a beneficiary or nominated person are separate from the underlying contract or arrangement. The document also highlights the importance of recognizing the distinction between letters of credit and other forms of engagement, such as secondary guarantees. It mentions that the scope of Article 5 can be supplemented by other laws and customs, such as the Uniform Customs and Practice for Documentary Credits. Overall, this document provides guidance and regulations for parties involved in letters of credit transactions within the state of Colorado.
Whom does it apply to?
Parties involved in transactions related to letters of credit, including issuers, beneficiaries, nominated persons, applicants, and advisers
What does it govern?
Letters of credit and certain rights and obligations arising from transactions involving letters of credit
What are exemptions?
This article does not apply to secondary or accessory guarantees
What are the Penalties?
No specific penalties mentioned
Jurisdiction
Colorado