2006 New York Code - Fraud And Forgery.

 
  Section 5--109. Fraud and forgery.
    (a) If  a  presentation  is  made that appears on its face strictly to
  comply with the terms and conditions of the  letter  of  credit,  but  a
  required  document  is  forged or materially fraudulent, or honor of the
  presentation would facilitate a material fraud by the beneficiary on the
  issuer or applicant:
         (1) The issuer shall honor the presentation, if honor is demanded
             by:
             (i) a nominated person who has given value in good faith  and
                 without notice of forgery or material fraud,
            (ii) a  confirmer  who  has  honored  its confirmation in good
                 faith,
           (iii) a holder in due course of a draft drawn under the  letter
                 of  credit which was taken after acceptance by the issuer
                 or nominated person, or
            (iv) an  assignee  of  the  issuer's  or  nominated   person's
                 deferred  obligation that was taken for value and without
                 notice of forgery or material fraud after the  obligation
                 was incurred by the issuer or nominated person; and
         (2) The  issuer,  acting in good faith, may honor or dishonor the
             presentation in any other case.
    (b) If an applicant claims that  a  required  document  is  forged  or
  materially fraudulent or that honor of the presentation would facilitate
  a  material fraud by the beneficiary on the issuer or applicant, a court
  of competent jurisdiction may  temporarily  or  permanently  enjoin  the
  issuer  from honoring a presentation or grant similar relief against the
  issuer or other persons only if the court finds that:
         (1) The relief is not prohibited under the law applicable  to  an
             accepted draft or deferred obligation incurred by the issuer;
         (2) A  beneficiary,  issuer,  or  nominated  person  who  may  be
             adversely affected is adequately protected against loss  that
             it may suffer because the relief is granted;
         (3) All of the conditions to entitle a person to the relief under
             the law of this state have been met; and
         (4) On  the  basis of the information submitted to the court, the
             applicant is more likely than not to succeed under its  claim
             of  forgery  or material fraud and the person demanding honor
             does not  qualify  for  protection  under  paragraph  (1)  of
             subsection (a) of this section.