Ask Reggi Your Question Now
Can you summarize IACO 554.5118?
UNIFORM COMMERCIAL CODE > Security interest of issuer or nominated person.
Short Summary
This legal provision, found in the Iowa Code under the Uniform Commercial Code, pertains to the security interest of an issuer or nominated person in a document presented under a letter of credit. The security interest arises when the issuer or nominated person honors or provides value for the presentation. The security interest continues until the issuer or nominated person has been reimbursed or has otherwise recovered the value given. This provision states that a security agreement is not necessary to enforce the security interest, and if the document is presented in a medium other than a written or tangible medium, the security interest is perfected. Additionally, if the document is presented in a written or tangible medium and is not a certificated security, chattel paper, document of title, instrument, or letter of credit, the security interest is perfected and takes priority over conflicting security interests as long as the debtor does not have possession of the document.
Whom does it apply to?
Issuers or nominated persons
What does it govern?
Security interest of issuer or nominated person
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Iowa