2019 New Mexico Statutes
Chapter 55 - Uniform Commercial Code
Article 5 - Letters of Credit
Section 55-5-105 - Consideration.
Consideration is not required to issue, amend, transfer or cancel a letter of credit, advice or confirmation.
History: 1978 Comp., § 55-5-105, enacted by Laws 1997, ch. 75, § 7.
ANNOTATIONSOFFICIAL COMMENTS
UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.
It is not to be expected that any issuer will issue its letter of credit without some form of remuneration. But it is not expected that the beneficiary will know what the issuer's remuneration was or whether in fact there was any identifiable remuneration in a given case. And it might be difficult for the beneficiary to prove the issuer's remuneration. This section dispenses with this proof and is consistent with the position of Lord Mansfield in Pillans v. Van Mierop, 97 Eng.Rep. 1035 (K.B. 1765) in making consideration irrelevant.
Repeals and reenactments. — Laws 1997, ch. 75, § 7 repealed former 55-5-105 NMSA 1978, as enacted by Laws 1961, ch. 96, § 5-105, and enacted a new section, effective July 1, 1997. For provisions of former section, see the 1996 NMSA 1978 on NMOneSource.com.
Am. Jur. 2d, A.L.R. and C.J.S. references. — 50 Am. Jur. 2d Letters of Credit and Credit Cards § 16.
