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Can you summarize NHRS 382-A:5-108?
UNIFORM COMMERCIAL CODE > Issuer's Rights and Obligations.
Short Summary
This section of the New Hampshire Revised Statutes, specifically the Uniform Commercial Code, governs the rights and obligations of an issuer in relation to a letter of credit. An issuer is required to honor a presentation that strictly complies with the terms and conditions of the letter of credit, unless otherwise provided in Section 5-109. The issuer has a reasonable time to honor the presentation, accept a draft, or give notice of discrepancies. The issuer is precluded from asserting any discrepancy as a basis for dishonor if timely notice is not given. However, failure to give notice does not preclude the issuer from asserting fraud, forgery, or expiration as a basis for dishonor. The issuer must observe the standard practice of financial institutions that regularly issue letters of credit. The issuer is not responsible for the performance or nonperformance of the underlying contract, acts or omissions of others, or observance of trade usage other than the standard practice. If a letter of credit contains nondocumentary conditions, the issuer must disregard them. If a presentation is dishonored, 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, takes the documents free of claims, and is discharged to the extent of its performance under the letter of credit.
Whom does it apply to?
Issuers of letters of credit
What does it govern?
Rights and obligations of an issuer in relation to a letter of credit
What are exemptions?
Section 5-109 provides exceptions to the issuer's obligation to honor a presentation
What are the Penalties?
No specific penalties mentioned in this section
Jurisdiction
New Hampshire