1998 Alaska Statutes
Title 45 TRADE AND COMMERCE
Chapter 45.05. LETTERS OF CREDIT
Sec. 45.05.109. Issuer's obligation to its customer.
Sec. 45.05.109. Issuer's obligation to its customer.
(a) An issuer's obligation to its customer includes good faith and observance of general banking usage, but unless otherwise agreed does not include liability or responsibility
(1) for performance of the underlying contract for sale or other transaction between the customer and the beneficiary;
(2) for an act or omission of a person other than itself or its own branch or for loss or destruction of a draft, demand, or document in transit or in the possession of others; or
(3) based on knowledge or lack of knowledge of a usage of a particular trade.
(b) An issuer must examine documents with care so as to ascertain that on their face they appear to comply with the terms of the credit, but unless otherwise agreed an issuer assumes no liability or responsibility for the genuineness, falsification, or effect of a document which appears on this examination to be regular on its face.
(c) A nonbank issuer is not bound by banking usage of which it has no knowledge.
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