2006 New York Code - Remedies.



 
  Section 5--111. Remedies.
    (a) If  an issuer wrongfully dishonors or repudiates its obligation to
  pay money under a letter of credit before presentation, the beneficiary,
  successor, or nominated person presenting on its own behalf may  recover
  from  the  issuer  the  amount  that  is  the subject of the dishonor or
  repudiation. If the issuer's obligation under the letter  of  credit  is
  not  for  the  payment  of  money,  the  claimant  may  obtain  specific
  performance or, at the claimant's election, recover an amount  equal  to
  the  value  of performance from the issuer. In either case, the claimant
  may also recover incidental but not consequential damages. The  claimant
  is  not obligated to take action to avoid damages that might be due from
  the issuer under this subsection. If, although not obligated to  do  so,
  the  claimant  avoids  damages,  the claimant's recovery from the issuer
  must be reduced by the amount of damages avoided.  The  issuer  has  the
  burden  of  proving  the  amount  of  damages  avoided.  In  the case of
  repudiation the claimant need not present any document.
    (b) If an issuer wrongfully dishonors  a  draft  or  demand  presented
  under  a  letter  of credit or honors a draft or demand in breach of its
  obligation to the applicant, the applicant may recover damages resulting
  from the breach, including incidental  but  not  consequential  damages,
  less any amount saved as a result of the breach.
    (c) If  an adviser or nominated person other than a confirmer breaches
  an obligation under this article or an issuer breaches an obligation not
  covered in subsection (a) or (b) of this section, a person to  whom  the
  obligation  is  owed  may  recover  damages  resulting  from the breach,
  including incidental but not  consequential  damages,  less  any  amount
  saved  as  a  result of the breach. To the extent of the confirmation, a
  confirmer has the liability of an issuer specified  in  this  subsection
  and subsections (a) and (b) of this section.
    (d) An  issuer, nominated person, or adviser who is found liable under
  subsection (a), (b) or (c) of this section shall  pay  interest  on  the
  amount  owed  thereunder  from  the  date  of wrongful dishonor or other
  appropriate date.
    (e) Damages that would otherwise be payable by a party for  breach  of
  an  obligation  under  this  article  may  be liquidated by agreement or
  undertaking, but only in an amount or by a formula that is reasonable in
  light of the harm anticipated.

Disclaimer: These codes may not be the most recent version. New York may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.