There is a newer version of this Section
2017 Maryland Code
Title 5 - Letters of Credit
§ 5-118. Security interest of issuer or nominated person
Universal Citation: MD Comm L Code § 5-118 (2017)
- (a) An issuer or nominated person has a security interest in a document presented under a letter of credit to the extent that the issuer or nominated person honors or gives value for the presentation.
- (b) So long as and to the extent that an issuer or nominated person has not been reimbursed or has not otherwise recovered the value given with respect to a security interest in a document under subsection (a), the security interest continues and is subject to Title 9 of this article, but:
- (1) A security agreement is not necessary to make the security interest enforceable under § 9-203(b)(3);
- (2) If the document is presented in a medium other than a written or other tangible medium, the security interest is perfected; and
- (3) If the document is presented in a written or other tangible medium and is not a certificated security, chattel paper, a document of title, an instrument, or a letter of credit, the security interest is perfected and has priority over a conflicting security interest in the document so long as the debtor does not have possession of the document.
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