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Can you summarize IACO 554.5109?
UNIFORM COMMERCIAL CODE > Fraud and forgery.
Short Summary
This legal document, part of the Iowa Code’s Uniform Commercial Code, governs the treatment of presentations made under a letter of credit that involve fraud or forgery. It outlines the circumstances under which an issuer must honor a presentation, even if a required document is forged or materially fraudulent, provided certain conditions are met. These conditions include the demand for honor being made by a nominated person who has given value in good faith and without notice of forgery or material fraud, or by other specified parties. The document also allows the issuer to honor or dishonor a presentation in other cases, acting in good faith. Additionally, it establishes that an applicant can seek court intervention to prevent the issuer from honoring a presentation if they can demonstrate certain conditions are met, including the likelihood of success in proving forgery or material fraud. Overall, this document provides guidelines for handling fraud and forgery in presentations made under a letter of credit.
Whom does it apply to?
Issuers, nominated persons, applicants, beneficiaries, confirmer, holders in due course, and assignees
What does it govern?
Fraud and forgery in relation to presentations made under a letter of credit
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No specific penalties are mentioned.
Jurisdiction
Iowa