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Can you summarize NHRS 382-A:5-118?
UNIFORM COMMERCIAL CODE > Security Interest of Issuer or Nominated Person.
Short Summary
This provision, found in the New Hampshire Revised Statutes under the Uniform Commercial Code, governs the security interest that an issuer or nominated person has in a document presented under a letter of credit. It states that the issuer or nominated person has a security interest to the extent that they honor or give value for the presentation. The security interest continues until the issuer or nominated person has been reimbursed or has otherwise recovered the value given. The provision also clarifies that a security agreement is not necessary to make the security interest enforceable, 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 has 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 in a document presented under a letter of credit
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
New Hampshire