1998 Alaska Statutes
Title 45 TRADE AND COMMERCE
Chapter 45.05. LETTERS OF CREDIT
Sec. 45.05.113. Indemnities.
(a) A bank seeking to obtain (whether for itself or another) honor, negotiation, or reimbursement under a credit may give an indemnity to induce the honor, negotiation, or reimbursement.
(b) An indemnity agreement inducing honor, negotiation, or reimbursement,
(1) unless otherwise explicitly agreed, applies to defects in the documents but not in the goods; and
(2) unless a longer time is explicitly agreed, expires at the end of 10 business days following receipt of the documents by the ultimate customer, unless notice of objection is sent before this expiration date. The ultimate customer may send notice of objection to the person from whom the customer received the documents, and a bank receiving this notice is under a duty to send notice to its transferor before its midnight deadline.
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