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Can you summarize IACO 554.5108?
UNIFORM COMMERCIAL CODE > Issuers rights and obligations.
Short Summary
This legal document, governed by the Iowa Code, specifically the Uniform Commercial Code, outlines the rights and obligations of an issuer in relation to letters of credit. The document states that an issuer must honor a presentation that strictly complies with the terms and conditions of the letter of credit, unless otherwise agreed with the applicant. The issuer has a reasonable time to honor the presentation, accept a draft, or give notice of discrepancies. The document also specifies that an issuer is not responsible for the performance or nonperformance of the underlying contract, acts or omissions of others, or observance of trade usage. If a letter of credit contains nondocumentary conditions, the issuer must disregard them. In case of dishonoring a presentation, the issuer must return the documents or hold them at the presenter’s disposal. If a presentation is honored, the issuer is entitled to reimbursement from the applicant and is discharged from further obligations under the letter of credit. The document does not mention any specific penalties or exemptions.
Whom does it apply to?
Issuers of letters of credit
What does it govern?
Rights and obligations of an issuer in relation to letters of credit
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Iowa