reglab/statecodes huggingface dataset:
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 4-A: FUNDS TRANSFERS › Part 4: PAYMENT › 11 §4-1403. Payment by sender to receiving bank

§4-1403. Payment by sender to receiving bank
(1).
Payment of the sender's obligation under section 4‑1402 to pay the receiving bank occurs as follows.
(a). If the sender is a bank, payment occurs when the receiving bank receives final settlement of the obligation through a Federal Reserve Bank or through a funds transfer system.   [PL 1991, c. 812, §2 (NEW).]
(b). If the sender is a bank and the sender credited an account of the receiving bank with the sender or caused an account of the receiving bank in another bank to be credited, payment occurs when the credit is withdrawn or, if not withdrawn, at midnight of the day on which the credit is withdrawable and the receiving bank learns of that fact.   [PL 1991, c. 812, §2 (NEW).]
(c). If the receiving bank debits an account of the sender with the receiving bank, payment occurs when the debit is made to the extent the debit is covered by a withdrawable credit balance in the account.   [PL 1991, c. 812, §2 (NEW).]
[PL 1991, c. 812, §2 (NEW).]
(2).
If the sender and receiving bank are members of a funds transfer system that nets obligations multilaterally among participants, the receiving bank receives final settlement when settlement is complete in accordance with the rules of the system. The obligation of the sender to pay the amount of a payment order transmitted through the funds transfer system may be satisfied, to the extent permitted by the rules of the system, by setting off and applying against the sender's obligation the right of the sender to receive payment from the receiving bank of the amount of any other payment order transmitted to the sender by the receiving bank through the funds transfer system. The aggregate balance of obligations owed by each sender to each receiving bank in the funds transfer system may be satisfied, to the extent permitted by the rules of the system, by setting off and applying against that balance the aggregate balance of obligations owed to the sender by other members of the system. The aggregate balance is determined after the right of setoff stated in this subsection has been exercised.
[PL 1991, c. 812, §2 (NEW).]
(3).
If 2 banks transmit payment orders to each other under an agreement that settlement of the obligations of each bank to the other under section 4‑1402 will be made at the end of the day or other period, the total amount owed with respect to all orders transmitted by one bank is set off against the total amount owed with respect to all orders transmitted by the other bank. To the extent of the setoff, each bank has made payment to the other.
[PL 1991, c. 812, §2 (NEW).]
(4).
In a case not covered by subsection (1), the time when payment of the sender's obligation under section 4‑1402, subsection (2) or subsection (3) occurs is governed by applicable principles of law that determine when an obligation is satisfied.
[PL 1991, c. 812, §2 (NEW).]
SECTION HISTORY
PL 1991, c. 812, §2 (NEW).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 4-A: FUNDS TRANSFERS › Part 4: PAYMENT › 11 §4-1404. Obligation of beneficiary's bank to pay and give notice to beneficiary

§4-1404. Obligation of beneficiary's bank to pay and give notice to beneficiary
(1).
Subject to section 4‑1211, subsection (5), and section 4‑1405, subsections (4) and (5), if a beneficiary's bank accepts a payment order, the bank is obliged to pay the amount of the order to the beneficiary of the order. Payment is due on the payment date of the order, but if acceptance occurs on the payment date after the close of the funds transfer business day of the bank, payment is due on the next funds transfer business day. If the bank refuses to pay after demand by the beneficiary and receipt of notice of particular circumstances that will give rise to consequential damages as a result of nonpayment, the beneficiary may recover damages resulting from the refusal to pay to the extent the bank had notice of the damages, unless the bank proves that it did not pay because of a reasonable doubt concerning the right of the beneficiary to payment.
[PL 1991, c. 812, §2 (NEW).]
(2).
If a payment order accepted by the beneficiary's bank instructs payment to an account of the beneficiary, the bank is obliged to notify the beneficiary of receipt of the order before midnight of the next funds transfer business day following the payment date. If the payment order does not instruct payment to an account of the beneficiary, the bank is required to notify the beneficiary only if notice is required by the order. Notice may be given by first class mail or any other means reasonable in the circumstances. If the bank fails to give the required notice, the bank is obliged to pay interest to the beneficiary on the amount of the payment order from the day notice should have been given until the day the beneficiary learned of receipt of the payment order by the bank. Other damages are not recoverable. Reasonable attorney's fees are also recoverable if demand for interest is made and refused before an action is brought on the claim.
[PL 1991, c. 812, §2 (NEW).]
(3).
The right of a beneficiary to receive payment and damages as stated in subsection (1) may not be varied by agreement or a funds transfer system rule. The right of a beneficiary to be notified as stated in subsection (2) may be varied by agreement of the beneficiary or by a funds transfer system rule if the beneficiary is notified of the rule before initiation of the funds transfer.
[PL 1991, c. 812, §2 (NEW).]
SECTION HISTORY
PL 1991, c. 812, §2 (NEW).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 4-A: FUNDS TRANSFERS › Part 4: PAYMENT › 11 §4-1406. Payment by originator to beneficiary; discharge of underlying obligation

§4-1406. Payment by originator to beneficiary; discharge of underlying obligation
(1).
Subject to section 4‑1211, subsection (5) and section 4‑1405, subsections (4) and (5), the originator of a funds transfer pays the beneficiary of the originator's payment order at the time a payment order for the benefit of the beneficiary is accepted by the beneficiary's bank in the funds transfer and in an amount equal to the amount of the order accepted by the beneficiary's bank, but not more than the amount of the originator's order.
[PL 1991, c. 812, §2 (NEW).]
(2).
If payment under subsection (1) is made to satisfy an obligation, the obligation is discharged to the same extent discharge would result from payment to the beneficiary of the same amount in money, unless:
(a). The payment under subsection (1) was made by a means prohibited by the contract of the beneficiary with respect to the obligation;   [PL 1991, c. 812, §2 (NEW).]
(b). The beneficiary, within a reasonable time after receiving notice of receipt of the order by the beneficiary's bank, notified the originator of the beneficiary's refusal of the payment;   [PL 1991, c. 812, §2 (NEW).]
(c). Funds with respect to the order were not withdrawn by the beneficiary or applied to a debt of the beneficiary; and   [PL 1991, c. 812, §2 (NEW).]
(d). The beneficiary would suffer a loss that could reasonably have been avoided if payment had been made by a means complying with the contract.   [PL 1991, c. 812, §2 (NEW).]
If payment by the originator does not result in discharge under this section, the originator is subrogated to the rights of the beneficiary to receive payment from the beneficiary's bank under section 4‑1404, subsection (1).
[PL 1991, c. 812, §2 (NEW).]
(3).
For the purpose of determining whether discharge of an obligation occurs under subsection (2), if the beneficiary's bank accepts a payment order in an amount equal to the amount of the originator's payment order less charges of one or more receiving banks in the funds transfer, payment to the beneficiary is deemed to be in the amount of the originator's order unless, upon demand by the beneficiary, the originator does not pay the beneficiary the amount of the deducted charges.
[PL 1991, c. 812, §2 (NEW).]
(4).
Rights of the originator or of the beneficiary of a funds transfer under this section may be varied only by agreement of the originator and the beneficiary.
[PL 1991, c. 812, §2 (NEW).]
SECTION HISTORY
PL 1991, c. 812, §2 (NEW).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 4-A: FUNDS TRANSFERS › Part 5: MISCELLANEOUS PROVISIONS › 11 §4-1501. Variation by agreement and effect of funds transfer system rule

§4-1501. Variation by agreement and effect of funds transfer system rule
(1).
Except as otherwise provided in this Article, the rights and obligations of a party to a funds transfer may be varied by agreement of the affected party.
[PL 1991, c. 812, §2 (NEW).]
(2).
"Funds transfer system rule" means a rule of an association of banks:
(a). Governing transmission of payment orders by means of a funds transfer system of the association or rights and obligations with respect to those orders; or   [PL 1991, c. 812, §2 (NEW).]
(b). To the extent the rule governs rights and obligations between banks that are parties to a funds transfer in which a Federal Reserve Bank, acting as an intermediary bank, sends a payment order to the beneficiary's bank.   [PL 1991, c. 812, §2 (NEW).]
[PL 1991, c. 812, §2 (NEW).]
Except as otherwise provided in this Article, a funds transfer system rule governing rights and obligations between participating banks using the system may be effective even if the rule conflicts with this Article and indirectly affects another party to the funds transfer who does not consent to the rule. A funds transfer system rule may also govern rights and obligations of parties other than participating banks using the system to the extent stated in sections 4‑1404, subsection (3), section 4‑1405, subsection (4) and section 4‑1507, subsection (3).   [PL 1991, c. 812, §2 (NEW).]
SECTION HISTORY
PL 1991, c. 812, §2 (NEW).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 4-A: FUNDS TRANSFERS › Part 5: MISCELLANEOUS PROVISIONS › 11 §4-1502. Creditor process served on receiving bank; setoff by beneficiary's bank

§4-1502. Creditor process served on receiving bank; setoff by beneficiary's bank
(1).
As used in this section, "creditor process" means levy, attachment, garnishment, notice of lien, sequestration or a similar process issued by or on behalf of a creditor or other claimant with respect to an account.
[PL 1991, c. 812, §2 (NEW).]
(2).
This subsection applies to the creditor process with respect to an authorized account of the sender of a payment order if the creditor process is served on the receiving bank. For the purpose of determining rights with respect to the creditor process, if the receiving bank accepts the payment order, the balance in the authorized account is deemed to be reduced by the amount of the payment order to the extent the bank did not otherwise receive payment of the order, unless the creditor process is served at a time and in a manner affording the bank a reasonable opportunity to act on it before the bank accepts the payment order.
[PL 1991, c. 812, §2 (NEW).]
(3).
If a beneficiary's bank has received a payment order for payment to the beneficiary's account in the bank, the following rules apply.
(a). The bank may credit the beneficiary's account. The amount credited may be set off against an obligation owed by the beneficiary to the bank or applied to satisfy creditor process served on the bank with respect to the account.   [PL 1991, c. 812, §2 (NEW).]
(b). The bank may credit the beneficiary's account and allow withdrawal of the amount credited unless creditor process with respect to the account is served at a time and in a manner affording the bank a reasonable opportunity to act to prevent withdrawal.   [PL 1991, c. 812, §2 (NEW).]
(c). If creditor process with respect to the beneficiary's account has been served and the bank has had a reasonable opportunity to act on it, the bank may not reject the payment order except for a reason unrelated to the service of process.   [PL 1991, c. 812, §2 (NEW).]
[PL 1991, c. 812, §2 (NEW).]
(4).
Creditor process with respect to a payment by the originator to the beneficiary pursuant to a funds transfer may be served only on the beneficiary's bank with respect to the debt owed by that bank to the beneficiary. Any other bank served with the creditor process is not obliged to act with respect to the process.
[PL 1991, c. 812, §2 (NEW).]
SECTION HISTORY
PL 1991, c. 812, §2 (NEW).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 4-A: FUNDS TRANSFERS › Part 5: MISCELLANEOUS PROVISIONS › 11 §4-1503. Injunction or restraining order with respect to funds transfer

§4-1503. Injunction or restraining order with respect to funds transfer
For proper cause and in compliance with applicable law, a court may restrain:   [PL 1991, c. 812, §2 (NEW).]
(1).
A person from issuing a payment order to initiate a funds transfer;
[PL 1991, c. 812, §2 (NEW).]
(2).
An originator's bank from executing the payment order of the originator; or
[PL 1991, c. 812, §2 (NEW).]
(3).
The beneficiary's bank from releasing funds to the beneficiary or the beneficiary from withdrawing those funds.
[PL 1991, c. 812, §2 (NEW).]
A court may not otherwise restrain a person from issuing a payment order, paying or receiving payment of a payment order or otherwise acting with respect to a funds transfer.   [PL 1991, c. 812, §2 (NEW).]
SECTION HISTORY
PL 1991, c. 812, §2 (NEW).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 4-A: FUNDS TRANSFERS › Part 5: MISCELLANEOUS PROVISIONS › 11 §4-1504. Order in which items and payment orders may be charged to account; order of withdrawals from account

§4-1504. Order in which items and payment orders may be charged to account; order of withdrawals from account
(1).
If a receiving bank has received more than one payment order of the sender or one or more payment orders and other items that are payable from the sender's account, the bank may charge the sender's account with respect to the various orders and items in any sequence.
[PL 1991, c. 812, §2 (NEW).]
(2).
In determining whether a credit to an account has been withdrawn by the holder of the account or applied to a debt of the holder of the account, credits first made to the account are first withdrawn or applied.
[PL 1991, c. 812, §2 (NEW).]
SECTION HISTORY
PL 1991, c. 812, §2 (NEW).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 4-A: FUNDS TRANSFERS › Part 5: MISCELLANEOUS PROVISIONS › 11 §4-1505. Preclusion of objection to debit of customer's account

§4-1505. Preclusion of objection to debit of customer's account
If a receiving bank has received payment from its customer with respect to a payment order issued in the name of the customer as sender and accepted by the bank and the customer received notification reasonably identifying the order, the customer is precluded from asserting that the bank is not entitled to retain the payment unless the customer notifies the bank of the customer's objection to the payment within one year after the notification was received by the customer.   [PL 1991, c. 812, §2 (NEW).]
SECTION HISTORY
PL 1991, c. 812, §2 (NEW).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 4-A: FUNDS TRANSFERS › Part 5: MISCELLANEOUS PROVISIONS › 11 §4-1506. Rate of interest

§4-1506. Rate of interest
(1).
If, under this Article, a receiving bank is obliged to pay interest with respect to a payment order issued to the bank, the amount payable may be determined:
(a). By agreement of the sender and receiving bank; or   [PL 1991, c. 812, §2 (NEW).]
(b). By a funds transfer system rule if the payment order is transmitted through a funds transfer system.   [PL 1991, c. 812, §2 (NEW).]
[PL 1991, c. 812, §2 (NEW).]
(2).
If the amount of interest is not determined by an agreement or rule as stated in subsection (1), the amount is calculated by multiplying the applicable federal funds rate by the amount on which interest is payable and then multiplying the product by the number of days for which interest is payable. The applicable federal funds rate is the average of the federal funds rates published by the Federal Reserve Bank of New York for each of the days for which interest is payable, divided by 360. The federal funds rate for any day on which a published rate is not available is the same as the published rate for the next preceding day for which there is a published rate. If a receiving bank that accepted a payment order is required to refund payment to the sender of the order because the funds transfer was not completed, but the failure to complete was not due to any fault by the bank, the interest payable is reduced by a percentage equal to the reserve requirement on deposits of the receiving bank.
[PL 1991, c. 812, §2 (NEW).]
SECTION HISTORY
PL 1991, c. 812, §2 (NEW).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 4-A: FUNDS TRANSFERS › Part 5: MISCELLANEOUS PROVISIONS › 11 §4-1507. Choice of law

§4-1507. Choice of law
(1).
The following rules apply unless the affected parties otherwise agree or subsection (3) applies.
(a). The rights and obligations between the sender of a payment order and the receiving bank are governed by the law of the jurisdiction in which the receiving bank is located.   [PL 1991, c. 812, §2 (NEW).]
(b). The rights and obligations between the beneficiary's bank and the beneficiary are governed by the law of the jurisdiction in which the beneficiary's bank is located.   [PL 1991, c. 812, §2 (NEW).]
(c). The issue of when payment is made pursuant to a funds transfer by the originator to the beneficiary is governed by the law of the jurisdiction in which the beneficiary's bank is located.   [PL 1991, c. 812, §2 (NEW).]
[PL 1991, c. 812, §2 (NEW).]
(2).
If the parties described in subsection (1), paragraphs (a), (b) and (c) have made an agreement and selected the law of a particular jurisdiction to govern rights and obligations between them, the law of that jurisdiction governs those rights and obligations whether or not the payment order or the funds transfer bears a reasonable relation to that jurisdiction.
[PL 1991, c. 812, §2 (NEW).]
(3).
A funds transfer system rule may select the law of a particular jurisdiction to govern the rights and obligations:
(a). Between participating banks with respect to payment orders transmitted or processed through the system; or   [PL 1991, c. 812, §2 (NEW).]
(b). Of some or all parties to a funds transfer, any part of which is carried out by means of the system.   [PL 1991, c. 812, §2 (NEW).]
A choice of law made pursuant to paragraph (a) is binding on participating banks. A choice of law made pursuant to paragraph (b) is binding on the originator, other sender or a receiving bank having notice that the funds transfer system may be used in the funds transfer and notice of the choice of law by the system, when the originator, other sender or receiving bank issued or accepted a payment order. The beneficiary of a funds transfer is bound by the choice of law if, when the funds transfer is initiated, the beneficiary has notice that the funds transfer system may be used in the funds transfer and notice of the choice of law by the system. The law of a jurisdiction selected pursuant to this subsection may govern, whether or not that law bears a reasonable relation to the matter in issue.
[PL 1991, c. 812, §2 (NEW).]
(4).
In the event of inconsistency between an agreement under subsection (2) and a choice-of-law rule under subsection (3), the agreement under subsection (2) prevails.
[PL 1991, c. 812, §2 (NEW).]
(5).
If a funds transfer is made by use of more than one funds transfer system and there is inconsistency between the choice-of-law rules of the systems, the matter in issue is governed by the law of the selected jurisdiction that has the most significant relationship to the matter in issue.
[PL 1991, c. 812, §2 (NEW).]
SECTION HISTORY
PL 1991, c. 812, §2 (NEW).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 5: LETTERS OF CREDIT (REPEALED) › 11 §5-101. Short title (REPEALED)

§5-101. Short title
(REPEALED)
SECTION HISTORY
PL 1997, c. 429, §A1 (RP). PL 1997, c. 429, §A4 (AFF).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 5: LETTERS OF CREDIT (REPEALED) › 11 §5-102. Scope (REPEALED)

§5-102. Scope
(REPEALED)
SECTION HISTORY
PL 1997, c. 429, §A1 (RP). PL 1997, c. 429, §A4 (AFF).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 5: LETTERS OF CREDIT (REPEALED) › 11 §5-103. Definitions (REPEALED)

§5-103. Definitions
(REPEALED)
SECTION HISTORY
PL 1997, c. 429, §A1 (RP). PL 1997, c. 429, §A4 (AFF).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 5: LETTERS OF CREDIT (REPEALED) › 11 §5-104. Formal requirements; signing (REPEALED)

§5-104. Formal requirements; signing
(REPEALED)
SECTION HISTORY
PL 1997, c. 429, §A1 (RP). PL 1997, c. 429, §A4 (AFF).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 5: LETTERS OF CREDIT (REPEALED) › 11 §5-105. Consideration (REPEALED)

§5-105. Consideration
(REPEALED)
SECTION HISTORY
PL 1997, c. 429, §A1 (RP). PL 1997, c. 429, §A4 (AFF).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 5: LETTERS OF CREDIT (REPEALED) › 11 §5-106. Time and effect of establishment of credit (REPEALED)

§5-106. Time and effect of establishment of credit
(REPEALED)
SECTION HISTORY
PL 1997, c. 429, §A1 (RP). PL 1997, c. 429, §A4 (AFF).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 5: LETTERS OF CREDIT (REPEALED) › 11 §5-107. Advice of credit; confirmation; error in statement of terms (REPEALED)

§5-107. Advice of credit; confirmation; error in statement of terms
(REPEALED)
SECTION HISTORY
PL 1965, c. 306, §14 (AMD). PL 1997, c. 429, §A1 (RP). PL 1997, c. 429, §A4 (AFF).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 5: LETTERS OF CREDIT (REPEALED) › 11 §5-108. "Notation credit"; exhaustion of credit (REPEALED)

§5-108. "Notation credit"; exhaustion of credit
(REPEALED)
SECTION HISTORY
PL 1965, c. 306, §15 (AMD). PL 1997, c. 429, §A1 (RP). PL 1997, c. 429, §A4 (AFF).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 5: LETTERS OF CREDIT (REPEALED) › 11 §5-109. Issuer's obligations to its customer (REPEALED)

§5-109. Issuer's obligations to its customer
(REPEALED)
SECTION HISTORY
PL 1997, c. 429, §A1 (RP). PL 1997, c. 429, §A4 (AFF).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 5: LETTERS OF CREDIT (REPEALED) › 11 §5-110. Availability of credit in portions; presenter's reservation of lien or claim (REPEALED)

§5-110. Availability of credit in portions; presenter's reservation of lien or claim
(REPEALED)
SECTION HISTORY
PL 1997, c. 429, §A1 (RP). PL 1997, c. 429, §A4 (AFF).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 5: LETTERS OF CREDIT (REPEALED) › 11 §5-111. Warranties on transfer and presentment (REPEALED)

§5-111. Warranties on transfer and presentment
(REPEALED)
SECTION HISTORY
PL 1997, c. 429, §A1 (RP). PL 1997, c. 429, §A4 (AFF).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 5: LETTERS OF CREDIT (REPEALED) › 11 §5-112. Time allowed for honor or rejection; withholding honor or rejection by consent; "presenter" (REPEALED)

§5-112. Time allowed for honor or rejection; withholding honor or rejection by consent; "presenter"
(REPEALED)
SECTION HISTORY
PL 1997, c. 429, §A1 (RP). PL 1997, c. 429, §A4 (AFF).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 5: LETTERS OF CREDIT (REPEALED) › 11 §5-113. Indemnities (REPEALED)

§5-113. Indemnities
(REPEALED)
SECTION HISTORY
PL 1997, c. 429, §A1 (RP). PL 1997, c. 429, §A4 (AFF).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 5: LETTERS OF CREDIT (REPEALED) › 11 §5-114. Issuer's duty and privilege to honor; right to reimbursement (REPEALED)

§5-114. Issuer's duty and privilege to honor; right to reimbursement
(REPEALED)
SECTION HISTORY
PL 1967, c. 213, §1 (AMD). PL 1987, c. 625, §2 (AMD). PL 1997, c. 429, §A1 (RP). PL 1997, c. 429, §A4 (AFF).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 5: LETTERS OF CREDIT (REPEALED) › 11 §5-115. Remedy for improper dishonor anticipatory repudiation (REPEALED)

§5-115. Remedy for improper dishonor anticipatory repudiation
(REPEALED)
SECTION HISTORY
PL 1997, c. 429, §A1 (RP). PL 1997, c. 429, §A4 (AFF).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 5: LETTERS OF CREDIT (REPEALED) › 11 §5-116. Transfer and assignment (REPEALED)

§5-116. Transfer and assignment
(REPEALED)
SECTION HISTORY
PL 1977, c. 526, §5 (AMD). PL 1997, c. 429, §A1 (RP). PL 1997, c. 429, §A4 (AFF).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 5: LETTERS OF CREDIT (REPEALED) › 11 §5-117. Insolvency of bank holding funds for documentary credit (REPEALED)

§5-117. Insolvency of bank holding funds for documentary credit
(REPEALED)
SECTION HISTORY
PL 1997, c. 429, §A1 (RP). PL 1997, c. 429, §A4 (AFF).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 5-A: LETTERS OF CREDIT › 11 §5-1101. Short title

§5-1101. Short title
This Article may be known and cited as the "Uniform Commercial Code -- Letters of Credit."   [PL 1997, c. 429, Pt. A, §2 (NEW); PL 1997, c. 429, Pt. A, §4 (AFF).]
SECTION HISTORY
PL 1997, c. 429, §A2 (NEW). PL 1997, c. 429, §A4 (AFF).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 5-A: LETTERS OF CREDIT › 11 §5-1103. Scope

§5-1103. Scope
(1).
This Article applies to letters of credit and to certain rights and obligations arising out of transactions involving letters of credit.
[PL 1997, c. 429, Pt. A, §2 (NEW); PL 1997, c. 429, Pt. A, §4 (AFF).]
(2).
The statement of a rule in this Article does not by itself require, imply or negate application of the same or a different rule to a situation not provided for, or to a person not specified, in this Article.
[PL 1997, c. 429, Pt. A, §2 (NEW); PL 1997, c. 429, Pt. A, §4 (AFF).]
(3).
With the exception of this subsection, subsections (1) and (4), section 5‑1102, subsection (1), paragraphs (i) and (j), section 5‑1106, subsection (4), and section 5‑1114, subsection (4), and except to the extent prohibited in section 1‑1302 and section 5‑1117, subsection (4), the effect of this Article may be varied by agreement or by a provision stated or incorporated by reference in an undertaking. A term in an agreement or undertaking generally excusing liability or generally limiting remedies for failure to perform obligations is not sufficient to vary obligations prescribed by this Article.
[PL 2009, c. 325, Pt. B, §22 (AMD); PL 2009, c. 325, Pt. B, §27 (AFF).]
(4).
Rights and obligations of an issuer to a beneficiary or a nominated person under a letter of credit are independent of the existence, performance or nonperformance of a contract or arrangement out of which the letter of credit arises or which underlies it, including contracts or arrangements between the issuer and the applicant and between the applicant and the beneficiary.
[PL 1997, c. 429, Pt. A, §2 (NEW); PL 1997, c. 429, Pt. A, §4 (AFF).]
SECTION HISTORY
PL 1997, c. 429, §A2 (NEW). PL 1997, c. 429, §A4 (AFF). PL 2009, c. 325, Pt. B, §22 (AMD). PL 2009, c. 325, Pt. B, §27 (AFF).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 5-A: LETTERS OF CREDIT › 11 §5-1104. Formal requirements

§5-1104. Formal requirements
A letter of credit, confirmation, advice, transfer, amendment or cancellation may be issued in any form that is a record and is authenticated by a signature or in accordance with the agreement of the parties or the standard practice referred to in section 5-1108, subsection (5).   [PL 1997, c. 429, Pt. A, §2 (NEW); PL 1997, c. 429, Pt. A, §4 (AFF).]
SECTION HISTORY
PL 1997, c. 429, §A2 (NEW). PL 1997, c. 429, §A4 (AFF).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 5-A: LETTERS OF CREDIT › 11 §5-1105. Consideration

§5-1105. Consideration
Consideration is not required to issue, amend, transfer or cancel a letter of credit, advice or confirmation.   [PL 1997, c. 429, Pt. A, §2 (NEW); PL 1997, c. 429, Pt. A, §4 (AFF).]
SECTION HISTORY
PL 1997, c. 429, §A2 (NEW). PL 1997, c. 429, §A4 (AFF).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 5-A: LETTERS OF CREDIT › 11 §5-1106. Issuance, amendment, cancellation and duration

§5-1106. Issuance, amendment, cancellation and duration
(1).
A letter of credit is issued and becomes enforceable according to its terms against the issuer when the issuer sends or otherwise transmits it to the person requested to advise or to the beneficiary. A letter of credit is revocable only if it so provides.
[PL 1997, c. 429, Pt. A, §2 (NEW); PL 1997, c. 429, Pt. A, §4 (AFF).]
(2).
After a letter of credit is issued, rights and obligations of a beneficiary, applicant, confirmer and issuer are not affected by an amendment or cancellation to which that person has not consented except to the extent the letter of credit provides that it is revocable or that the issuer may amend or cancel the letter of credit without that consent.
[PL 1997, c. 429, Pt. A, §2 (NEW); PL 1997, c. 429, Pt. A, §4 (AFF).]
(3).
If there is no stated expiration date or other provision that determines its duration, a letter of credit expires one year after its stated date of issuance or, if none is stated, after the date on which it is issued.
[PL 1997, c. 429, Pt. A, §2 (NEW); PL 1997, c. 429, Pt. A, §4 (AFF).]
(4).
A letter of credit that states that it is perpetual expires 5 years after its stated date of issuance or, if none is stated, after the date on which it is issued.
[PL 1997, c. 429, Pt. A, §2 (NEW); PL 1997, c. 429, Pt. A, §4 (AFF).]
SECTION HISTORY
PL 1997, c. 429, §A2 (NEW). PL 1997, c. 429, §A4 (AFF).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 5-A: LETTERS OF CREDIT › 11 §5-1107. Confirmer, nominated person and adviser

§5-1107. Confirmer, nominated person and adviser
(1).
A confirmer is directly obligated on a letter of credit and has the rights and obligations of an issuer to the extent of its confirmation. The confirmer also has rights against and obligations to the issuer as if the issuer were an applicant and the confirmer had issued the letter of credit at the request and for the account of the issuer.
[PL 1997, c. 429, Pt. A, §2 (NEW); PL 1997, c. 429, Pt. A, §4 (AFF).]
(2).
A nominated person who is not a confirmer is not obligated to honor or otherwise give value for a presentation.
[PL 1997, c. 429, Pt. A, §2 (NEW); PL 1997, c. 429, Pt. A, §4 (AFF).]
(3).
A person requested to advise may decline to act as an adviser. An adviser that is not a confirmer is not obligated to honor or give value for a presentation. An adviser undertakes to the issuer and to the beneficiary accurately to advise the terms of the letter of credit, confirmation, amendment or advice received by that person and undertakes to the beneficiary to check the apparent authenticity of the request to advise. Even if the advice is inaccurate, the letter of credit, confirmation or amendment is enforceable as issued.
[PL 1997, c. 429, Pt. A, §2 (NEW); PL 1997, c. 429, Pt. A, §4 (AFF).]
(4).
A person who notifies a transferee beneficiary of the terms of a letter of credit, confirmation, amendment or advice has the rights and obligations of an adviser under subsection (3). The terms in the notice to the transferee beneficiary may differ from the terms in any notice to the transferor beneficiary to the extent permitted by the letter of credit, confirmation, amendment or advice received by the person who so notifies.
[PL 1997, c. 429, Pt. A, §2 (NEW); PL 1997, c. 429, Pt. A, §4 (AFF).]
SECTION HISTORY
PL 1997, c. 429, §A2 (NEW). PL 1997, c. 429, §A4 (AFF).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 5-A: LETTERS OF CREDIT › 11 §5-1109. Fraud and forgery

§5-1109. Fraud and forgery
(1).
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:
(a). 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 that 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   [PL 1997, c. 429, Pt. A, §2 (NEW); PL 1997, c. 429, Pt. A, §4 (AFF).]
(b). The issuer, acting in good faith, may honor or dishonor the presentation in any other case.   [PL 1997, c. 429, Pt. A, §2 (NEW); PL 1997, c. 429, Pt. A, §4 (AFF).]
[PL 1997, c. 429, Pt. A, §2 (NEW); PL 1997, c. 429, Pt. A, §4 (AFF).]
(2).
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:
(a). The relief is not prohibited under the law applicable to an accepted draft or deferred obligation incurred by the issuer;   [PL 1997, c. 429, Pt. A, §2 (NEW); PL 1997, c. 429, Pt. A, §4 (AFF).]
(b). 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;   [PL 1997, c. 429, Pt. A, §2 (NEW); PL 1997, c. 429, Pt. A, §4 (AFF).]
(c). All of the conditions to entitle a person to the relief under the law of this State have been met; and   [PL 1997, c. 429, Pt. A, §2 (NEW); PL 1997, c. 429, Pt. A, §4 (AFF).]
(d). 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 subsection (1), paragraph (a).   [PL 1997, c. 429, Pt. A, §2 (NEW); PL 1997, c. 429, Pt. A, §4 (AFF).]
[PL 1997, c. 429, Pt. A, §2 (NEW); PL 1997, c. 429, Pt. A, §4 (AFF).]
SECTION HISTORY
PL 1997, c. 429, §A2 (NEW). PL 1997, c. 429, §A4 (AFF).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 5-A: LETTERS OF CREDIT › 11 §5-1110. Warranties

§5-1110. Warranties
(1).
If its presentation is honored, the beneficiary warrants to:
(a). The issuer, any other person to whom presentation is made and the applicant that there is no fraud or forgery of the kind described in section 5‑1109, subsection (1); and   [PL 1997, c. 429, Pt. A, §2 (NEW); PL 1997, c. 429, Pt. A, §4 (AFF).]
(b). The applicant that the drawing does not violate any agreement between the applicant and beneficiary or any other agreement intended by them to be augmented by the letter of credit.   [PL 1997, c. 429, Pt. A, §2 (NEW); PL 1997, c. 429, Pt. A, §4 (AFF).]
[PL 1997, c. 429, Pt. A, §2 (NEW); PL 1997, c. 429, Pt. A, §4 (AFF).]
(2).
The warranties in subsection (1) are in addition to warranties arising under Articles 3‑A, 4, 7‑A and 8‑A because of the presentation or transfer of documents covered by any of those Articles.
[PL 2009, c. 324, Pt. B, §25 (AMD); PL 2009, c. 324, Pt. B, §48 (AFF).]
SECTION HISTORY
PL 1997, c. 429, §A2 (NEW). PL 1997, c. 429, §A4 (AFF). PL 2009, c. 324, Pt. B, §25 (AMD). PL 2009, c. 324, Pt. B, §48 (AFF).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 5-A: LETTERS OF CREDIT › 11 §5-1111. Remedies

§5-1111. Remedies
(1).
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.
[PL 1997, c. 429, Pt. A, §2 (NEW); PL 1997, c. 429, Pt. A, §4 (AFF).]
(2).
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.
[PL 1997, c. 429, Pt. A, §2 (NEW); PL 1997, c. 429, Pt. A, §4 (AFF).]
(3).
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 (1) or (2), 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 (1) and (2).
[PL 1997, c. 429, Pt. A, §2 (NEW); PL 1997, c. 429, Pt. A, §4 (AFF).]
(4).
An issuer, nominated person or adviser who is found liable under subsection (1), (2) or (3) shall pay interest on the amount owed from the date of wrongful dishonor or other appropriate date.
[PL 1997, c. 429, Pt. A, §2 (NEW); PL 1997, c. 429, Pt. A, §4 (AFF).]
(5).
Reasonable attorney's fees and other expenses of litigation must be awarded to the prevailing party in an action in which a remedy is sought under this Article.
[PL 1997, c. 429, Pt. A, §2 (NEW); PL 1997, c. 429, Pt. A, §4 (AFF).]
(6).
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.
[PL 1997, c. 429, Pt. A, §2 (NEW); PL 1997, c. 429, Pt. A, §4 (AFF).]
SECTION HISTORY
PL 1997, c. 429, §A2 (NEW). PL 1997, c. 429, §A4 (AFF).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 5-A: LETTERS OF CREDIT › 11 §5-1112. Transfer of letter of credit

§5-1112. Transfer of letter of credit
(1).
Except as otherwise provided in section 5-1113, unless a letter of credit provides that it is transferable, the right of a beneficiary to draw or otherwise demand performance under a letter of credit may not be transferred.
[PL 1997, c. 429, Pt. A, §2 (NEW); PL 1997, c. 429, Pt. A, §4 (AFF).]
(2).
Even if a letter of credit provides that it is transferable, the issuer may refuse to recognize or carry out a transfer if:
(a). the transfer would violate applicable law; or   [PL 1997, c. 429, Pt. A, §2 (NEW); PL 1997, c. 429, Pt. A, §4 (AFF).]
(b). the transferor or transferee has failed to comply with any requirement stated in the letter of credit or any other requirement relating to transfer imposed by the issuer that is within the standard practice referred to in section 5-1108, subsection (5) or is otherwise reasonable under the circumstances.   [PL 1997, c. 429, Pt. A, §2 (NEW); PL 1997, c. 429, Pt. A, §4 (AFF).]
[PL 1997, c. 429, Pt. A, §2 (NEW); PL 1997, c. 429, Pt. A, §4 (AFF).]
SECTION HISTORY
PL 1997, c. 429, §A2 (NEW). PL 1997, c. 429, §A4 (AFF).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 5-A: LETTERS OF CREDIT › 11 §5-1113. Transfer by operation of law

§5-1113. Transfer by operation of law
(1).
A successor of a beneficiary may consent to amendments, sign and present documents and receive payment or other items of value in the name of the beneficiary without disclosing its status as a successor.
[PL 1997, c. 429, Pt. A, §2 (NEW); PL 1997, c. 429, Pt. A, §4 (AFF).]
(2).
A successor of a beneficiary may consent to amendments, sign and present documents and receive payment or other items of value in its own name as the disclosed successor of the beneficiary. Except as otherwise provided in subsection (5), an issuer shall recognize a disclosed successor of a beneficiary as beneficiary in full substitution for its predecessor upon compliance with the requirements for recognition by the issuer of a transfer of drawing rights by operation of law under the standard practice referred to in section 5‑1108, subsection (5) or, in the absence of such a practice, compliance with other reasonable procedures sufficient to protect the issuer.
[PL 1997, c. 429, Pt. A, §2 (NEW); PL 1997, c. 429, Pt. A, §4 (AFF).]
(3).
An issuer is not obliged to determine whether a purported successor is a successor of a beneficiary or whether the signature of a purported successor is genuine or authorized.
[PL 1997, c. 429, Pt. A, §2 (NEW); PL 1997, c. 429, Pt. A, §4 (AFF).]
(4).
Honor of a purported successor's apparently complying presentation under subsection (1) or (2) has the consequences specified in section 5‑1108, subsection (9) even if the purported successor is not the successor of a beneficiary. Documents signed in the name of the beneficiary or of a disclosed successor by a person who is neither the beneficiary nor the successor of the beneficiary are forged documents for the purposes of section 5‑1109.
[PL 1997, c. 429, Pt. A, §2 (NEW); PL 1997, c. 429, Pt. A, §4 (AFF).]
(5).
An issuer whose rights of reimbursement are not covered by subsection (4) or substantially similar law and any confirmer or nominated person may decline to recognize a presentation under subsection (2).
[PL 1997, c. 429, Pt. A, §2 (NEW); PL 1997, c. 429, Pt. A, §4 (AFF).]
(6).
A beneficiary whose name is changed after the issuance of a letter of credit has the same rights and obligations as a successor of a beneficiary under this section.
[PL 1997, c. 429, Pt. A, §2 (NEW); PL 1997, c. 429, Pt. A, §4 (AFF).]
SECTION HISTORY
PL 1997, c. 429, §A2 (NEW). PL 1997, c. 429, §A4 (AFF).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 5-A: LETTERS OF CREDIT › 11 §5-1114. Assignment of proceeds

§5-1114. Assignment of proceeds
(1).
In this section, "proceeds of a letter of credit" means the cash, check, accepted draft or other item of value paid or delivered upon honor or giving of value by the issuer or any nominated person under the letter of credit. The term does not include a beneficiary's drawing rights or documents presented by the beneficiary.
[PL 1997, c. 429, Pt. A, §2 (NEW); PL 1997, c. 429, Pt. A, §4 (AFF).]
(2).
A beneficiary may assign its right to part or all of the proceeds of a letter of credit. The beneficiary may do so before presentation as a present assignment of its right to receive proceeds contingent upon its compliance with the terms and conditions of the letter of credit.
[PL 1997, c. 429, Pt. A, §2 (NEW); PL 1997, c. 429, Pt. A, §4 (AFF).]
(3).
An issuer or nominated person need not recognize an assignment of proceeds of a letter of credit until it consents to the assignment.
[PL 1997, c. 429, Pt. A, §2 (NEW); PL 1997, c. 429, Pt. A, §4 (AFF).]
(4).
An issuer or nominated person has no obligation to give or withhold its consent to an assignment of proceeds of a letter of credit, but consent may not be unreasonably withheld if the assignee possesses and exhibits the letter of credit and presentation of the letter of credit is a condition to honor.
[PL 1997, c. 429, Pt. A, §2 (NEW); PL 1997, c. 429, Pt. A, §4 (AFF).]
(5).
Rights of a transferee beneficiary or nominated person are independent of the beneficiary's assignment of the proceeds of a letter of credit and are superior to the assignee's right to the proceeds.
[PL 1997, c. 429, Pt. A, §2 (NEW); PL 1997, c. 429, Pt. A, §4 (AFF).]
(6).
Neither the rights recognized by this section between an assignee and an issuer, transferee beneficiary or nominated person nor the issuer's or nominated person's payment of proceeds to an assignee or a 3rd person affect the rights between the assignee and any person other than the issuer, transferee beneficiary or nominated person. The mode of creating and perfecting a security interest in or granting an assignment of a beneficiary's rights to proceeds is governed by Article 9 or other law. Against persons other than the issuer, transferee beneficiary or nominated person, the rights and obligations arising upon the creation of a security interest or other assignment of a beneficiary's right to proceeds and its perfection are governed by Article 9 or other law.
[PL 1997, c. 429, Pt. A, §2 (NEW); PL 1997, c. 429, Pt. A, §4 (AFF).]
SECTION HISTORY
PL 1997, c. 429, §A2 (NEW). PL 1997, c. 429, §A4 (AFF).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 5-A: LETTERS OF CREDIT › 11 §5-1115. Statute of limitations

§5-1115. Statute of limitations
An action to enforce a right or obligation arising under this Article must be commenced within one year after the expiration date of the relevant letter of credit or one year after the claim for relief or cause of action accrues, whichever occurs later. A claim for relief or cause of action accrues when the breach occurs, regardless of the aggrieved party's lack of knowledge of the breach.   [PL 1997, c. 429, Pt. A, §2 (NEW); PL 1997, c. 429, Pt. A, §4 (AFF).]
SECTION HISTORY
PL 1997, c. 429, §A2 (NEW). PL 1997, c. 429, §A4 (AFF).