2010 Pennsylvania Code
Title 13 - COMMERCIAL CODE
Chapter 51 - Letters of Credit
5118 - Security interest of issuer or nominated person. DIVISION 6. BULK TRANSFERS (Repealed)

     § 5118.  Security interest of issuer or nominated person.
        (a)  General rule.--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)  Duration.--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 Division 9 (relating to secured transactions),
     but:
            (1)  a security agreement is not necessary to make the
        security interest enforceable under section 9203(b)(3)
        (relating to attachment and enforceability of security
        interest; proceeds; supporting obligations; formal
        requisites);
            (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.

        Cross References.  Section 5118 is referred to in sections
     9102, 9109, 9203, 9309, 9322 of this title.