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Can you summarize NVRS 104.5117?
Uniform Commercial CodeOriginal Articles > Subrogation of issuer, applicant and nominated person.
Short Summary
This legal provision, found in the Nevada Revised Statutes under the Uniform Commercial CodeOriginal Articles, governs the subrogation rights of issuers, applicants, and nominated persons in commercial transactions. According to the provision, an issuer that honors a beneficiary’s presentation is subrogated to the rights of the beneficiary and the applicant as if the issuer were a secondary obligor of the underlying obligation owed to them. Similarly, an applicant that reimburses an issuer 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. However, the rights of subrogation do not arise until the issuer honors the letter of credit or otherwise pays, and the nominated person pays or gives value. Until then, the issuer, nominated person, and applicant do not have present or prospective rights forming the basis of a claim, defense, or excuse.
Whom does it apply to?
Issuers, beneficiaries, presenters, nominated persons, and applicants involved in commercial transactions governed by the Uniform Commercial CodeOriginal Articles in Nevada
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
Nevada