NY UCC § 5-108 (2021)
2021 New York Laws UCC - Uniform Commercial Code Article 5 - Letters of Credit 5-108 - Issuer's Rights and Obligations.

Section 5--108. Issuer's rights and obligations.  (a) Except  as  otherwise  provided in section 5--109, an issuer shall honor a presentation  that,  as  determined  by  the  standard  practice referred  to  in  subsection  (e)  of  this section, appears on its face strictly to comply with the  terms  and  conditions  of  the  letter  of credit.  Except  as  otherwise  provided  in  section  5--113 and unless otherwise  agreed  with  the  applicant,  an  issuer  shall  dishonor  a presentation that does not appear so to comply.  (b) An issuer has a reasonable time after presentation, but not beyond the  end  of  the seventh business day of the issue after the day of its receipt of documents:       (1) to honor,       (2) if the letter of credit provides for honor  to  be  completed            more than seven business days after presentation, to accept a            draft or incur a deferred obligation, or       (3) to  give  notice  to  the  presenter  of discrepancies in the            presentation.  (c) Except as otherwise provided in subsection (d) of this section, an issuer  is  precluded  from  asserting  as  a  basis  for  dishonor  any discrepancy if timely notice is not given, or any discrepancy not stated in the notice if timely notice is given.  (d) Failure  to  give  the  notice specified in subsection (b) of this section or to mention fraud, forgery, or expiration in the  notice  does not  preclude the issuer from asserting as a basis for dishonor fraud or forgery as described in subsection (a) of section 5--109  or  expiration of the letter of credit before presentation.  (e) An   issuer   shall   observe   standard   practice  of  financial institutions that regularly issue letters of credit.  (f) An issuer is not responsible for:       (1) the performance or nonperformance of the underlying contract,            arrangement, or transaction,       (2) an act or omission of others, or       (3) observance or knowledge of the usage of  a  particular  trade            other  than  the  standard practice referred to in subsection           (e) of this section.  (g) If an undertaking constituting a letter of credit under  paragraph (10)  of  subsection  (a)  of  section  5--102  contains  nondocumentary conditions, an issuer shall disregard the nondocumentary conditions  and treat them as if they were not stated.  (h) An  issuer  that  has  dishonored  a presentation shall return the documents or hold them at the disposal  of,  and  send  advice  to  that effect to, the presenter.  (i) An issuer that has honored a presentation as permitted or required by this article:       (1) is  entitled to be reimbursed by the applicant in immediately            available funds not later than the date  of  its  payment  of            funds;       (2) takes  the  documents  free  of  claims of the beneficiary or            presenter;       (3) is precluded from asserting a right of recourse  on  a  draft            under sections 3--414 and 3--415;       (4) except  as  otherwise provided in sections 5--110 and 5--117,            is precluded from restitution of money paid  or  other  value            given   by   mistake  to  the  extent  the  mistake  concerns            discrepancies in the documents or tender which  are  apparent            on the face of the presentation; and       (5) is  discharged  to  the  extent  of its performance under the            letter of credit unless the issuer honored a presentation  in            which a required signature of a beneficiary was forged.