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Can you summarize NHRS 382-A:5-117?
UNIFORM COMMERCIAL CODE > Subrogation of Issuer, Applicant, and Nominated Person.
Short Summary
This legal provision, found in the New Hampshire Revised Statutes under the Uniform Commercial Code, governs the subrogation rights of issuers, applicants, and nominated persons in letter of credit transactions. According to this provision, when an issuer honors a beneficiary’s presentation, the issuer is subrogated to the rights of the beneficiary and the applicant as if the issuer were a secondary obligor of the underlying obligation. Similarly, when an applicant reimburses an issuer, the applicant is subrogated to the rights of the issuer against any beneficiary, presenter, or nominated person. Additionally, a nominated person who pays or gives value against a draft or demand presented under a letter of credit is subrogated to the rights of the issuer, beneficiary, and applicant. It is important to note that the rights of subrogation do not arise until the issuer or nominated person fulfills their respective obligations. This provision does not mention any specific exemptions or penalties.
Whom does it apply to?
Issuers, beneficiaries, presenters, nominated persons, and applicants involved in letter of credit transactions
What does it govern?
Subrogation of Issuer, Applicant, and Nominated Person
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
New Hampshire