2006 New York Code - Definitions.



 
  Section 5--102. Definitions.
    (a) In this article:
         (1) "Adviser" means a person who, at the request of the issuer, a
             confirmer,  or  another adviser, notifies or requests another
             adviser to notify the beneficiary that a letter of credit has
             been issued, confirmed, or amended.
         (2) "Applicant" means a person at  whose  request  or  for  whose
             account  a  letter  of  credit is issued. The term includes a
             person who requests an issuer to issue a letter of credit  on
             behalf of another if the person making the request undertakes
             an obligation to reimburse the issuer.
         (3) "Beneficiary"  means a person who under the terms of a letter
             of credit is entitled  to  have  its  complying  presentation
             honored.  The  term  includes a person to whom drawing rights
             have been transferred under a transferable letter of credit.
         (4) "Confirmer" means a nominated person who undertakes,  at  the
             request  or  with  the  consent  of  the  issuer,  to honor a
             presentation under a letter of credit issued by another.
         (5) "Dishonor" of a letter of  credit  means  failure  to  timely
             honor  or  to take an interim action, such as acceptance of a
             draft, that may be required by the letter of credit.
         (6) "Document" means a draft or other demand, document of  title,
             investment  security,  certificate, invoice, or other record,
             statement, or representation of fact, law, right, or opinion:
             (i) which is presented in a written or other medium permitted
                 by the letter of credit  or,  unless  prohibited  by  the
                 letter of credit, by the standard practice referred to in
                 subsection (e) of section 5--108; and
            (ii) which  is  capable  of being examined for compliance with
                 the terms and conditions  of  the  letter  of  credit.  A
                 document may not be oral.
         (7) "Good  faith"  means  honesty  in  fact  in  the  conduct  or
             transaction concerned.
         (8) "Honor" of a  letter  of  credit  means  performance  of  the
             issuer's  undertaking  in  the  letter  of  credit  to pay or
             deliver an item of  value.    Unless  the  letter  of  credit
             otherwise provides, "honor" occurs:
             (i) upon payment,
            (ii) if  the  letter  of  credit provides for acceptance, upon
                 acceptance of a draft and, at maturity, its payment, or
           (iii) if the letter of credit provides for incurring a deferred
                 obligation,  upon  incurring  the  obligation   and,   at
                 maturity, its performance.
         (9) "Issuer" means a bank or other person that issues a letter of
             credit,  but  does  not  include  an  individual who makes an
             engagement for personal, family, or household purposes.
        (10) "Letter  of  credit"  means  a  definite   undertaking   that
             satisfies  the requirements of section 5--104 by an issuer to
             a beneficiary at  the  request  or  for  the  account  of  an
             applicant  or,  in  the  case  of a financial institution, to
             itself or  for  its  own  account,  to  honor  a  documentary
             presentation by payment or delivery of an item of value.
        (11) "Nominated person" means a person whom the issuer:
             (i) designates  or  authorizes  to pay, accept, negotiate, or
                 otherwise give value under a letter of credit, and
            (ii) undertakes  by  agreement  or  custom  and  practice   to
                 reimburse.
        (12) "Presentation"  means  delivery of a document to an issuer or
             nominated person for honor or giving of value under a  letter
             of credit.
        (13) "Presenter"  means  a  person  making a presentation as or on
             behalf of a beneficiary or nominated person.
        (14) "Record" means information that is inscribed  on  a  tangible
             medium,  or  that  is stored in an electronic or other medium
             and is retrievable in perceivable form.
        (15) "Successor of a beneficiary" means a person who  succeeds  to
             substantially all of the rights of a beneficiary by operation
             of  law,  including  a  corporation  with  or  into which the
             beneficiary   has   been   merged   or    consolidated,    an
             administrator,  executor, personal representative, trustee in
             bankruptcy, debtor in possession, liquidator, and receiver.
    (b) Definitions in other articles applying to  this  article  and  the
  sections in which they appear are:
        "Accept" or "acceptance"                  Section 3--410
        "Value"                                   Sections 3--303, 4--209.
    (c) Article  1  contains  certain  additional  general definitions and
  principles of construction and interpretation applicable throughout this
  article.

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