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Can you summarize IACO 554.5111?
UNIFORM COMMERCIAL CODE > Remedies.
Short Summary
This legal document, governed by the Iowa Code under the Uniform Commercial Code, outlines the remedies available in various scenarios. If an issuer wrongfully dishonors or repudiates its obligation to pay money under a letter of credit, the beneficiary, successor, or nominated person presenting on its own behalf may recover the amount that is the subject of the dishonor or repudiation. If the issuer’s obligation under the letter of credit is not for the payment of money, the claimant may obtain specific performance or recover an amount equal to the value of performance. The claimant may also recover incidental damages but not consequential damages. If an issuer wrongfully dishonors a draft or demand presented under a letter of credit or honors a draft or demand in breach of its obligation to the applicant, the applicant may recover damages resulting from the breach. Similarly, if an adviser or nominated person breaches an obligation, a person to whom the obligation is owed may recover damages. The document also mentions the liability of a confirmer and the payment of interest on the amount owed. Additionally, reasonable attorney’s fees and other expenses of litigation must be awarded to the prevailing party. Parties may also agree to liquidate damages by agreement or undertaking, but only in a reasonable amount or formula. Overall, this document provides guidance on the available remedies and obligations in relation to letters of credit and breaches of obligations.
Whom does it apply to?
Beneficiaries, successors, nominated persons, applicants, advisers, and issuers
What does it govern?
Remedies
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
Interest on the amount owed, reasonable attorney's fees, and other expenses of litigation
Jurisdiction
Iowa