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Can you summarize NYCL UCC Article 5?
Uniform Commercial Code > Letters of Credit
Short Summary
The legal document content reviewed pertains to the Uniform Commercial Code (UCC) under the Consolidated Laws of New York, specifically governing letters of credit. It covers various aspects such as subrogation rights, liability, security interest, assignment of proceeds, transfer of rights and obligations, warranties, time limits for actions, treatment of fraudulent documents, transferability, remedies, issuer’s rights and obligations, roles and obligations of parties, form and authentication, consideration requirement, enforceability, revocability, amendment, cancellation, and duration of letters of credit. The document provides definitions for terms used in letters of credit transactions. It applies to issuers, applicants, beneficiaries, nominated persons, successors of beneficiaries, confirmer, advisers, transferee beneficiaries, transferor beneficiaries, persons notified of the terms of a letter of credit, and other parties involved in letters of credit transactions. No specific exemptions or penalties are mentioned in the document.
Whom does it apply to?
Issuers, applicants, beneficiaries, nominated persons, successors of beneficiaries, confirmer, advisers, transferee beneficiaries, transferor beneficiaries, persons notified of the terms of a letter of credit, and other parties involved in letters of credit transactions
What does it govern?
Subrogation rights of issuers, applicants, and nominated persons in letters of credit transactions; liability of an issuer, nominated person, or adviser for their actions or omissions; security interest in documents presented under a letter of credit; assignment of proceeds of a letter of credit; transfer of rights and obligations by operation of law in relation to beneficiaries and successors of beneficiaries; warranties of the beneficiary in case of presentation; time limit for commencing an action to enforce a right or obligation arising under this article; treatment of fraudulent or forged documents in the context of letters of credit; transferability of the right of a beneficiary to draw or demand performance under a letter of credit; remedies available in cases of wrongful dishonor, repudiation, or breach of obligations related to letters of credit; rights and obligations of an issuer in relation to letters of credit; roles and obligations of various parties involved in letters of credit; form and authentication of letters of credit, advice, transfer, amendment, or cancellation; consideration requirement for issuing, amending, transferring, or canceling a letter of credit, advice, or confirmation; enforceability, revocability, amendment, cancellation, and duration of letters of credit; general provisions governing letters of credit under the Uniform Commercial Code; definitions of terms used in letters of credit transactions
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No specific penalties are mentioned.
Jurisdiction
New York