reglab/statecodes huggingface dataset:
2023 New York Laws › UCC - Uniform Commercial Code › Article 4-A - Funds Transfers › Part 3 - Execution of Sender's Payment Order by Receiving Bank › 4-A-305 - Liability for Late or Improper Execution or Failure to Execute Payment Order.

Section 4-A-305. Liability  for Late or Improper Execution or Failure to
Execute Payment Order.
(1) If a funds transfer is completed but execution of a payment  order
by  the  receiving bank in breach of Section 4-A-302 results in delay in
payment to the beneficiary, the bank  is  obliged  to  pay  interest  to
either  the  originator or the beneficiary of the funds transfer for the
period of delay caused by the improper execution. Except as provided  in
subsection (3), additional damages are not recoverable.
(2)  If  execution of a payment order by a receiving bank in breach of
Section 4-A-302 results in (i) noncompletion of the funds transfer, (ii)
failure to use an intermediary bank designated  by  the  originator,  or
(iii) issuance of a payment order that does not comply with the terms of
the  payment  order  of  the  originator,  the  bank  is  liable  to the
originator for its expenses in the funds  transfer  and  for  incidental
expenses  and  interest  losses, to the extent not covered by subsection
(1), resulting from  the  improper  execution.  Except  as  provided  in
subsection (3), additional damages are not recoverable.
(3)  In addition to the amounts payable under subsections (1) and (2),
damages, including consequential damages, are recoverable to the  extent
provided in an express written agreement of the receiving bank.
(4)  If  a  receiving  bank  fails  to  execute a payment order it was
obliged by express agreement to execute, the receiving bank is liable to
the sender for its  expenses  in  the  transaction  and  for  incidental
expenses  and  interest  losses  resulting  from the failure to execute.
Additional damages, including consequential damages, are recoverable  to
the  extent  provided  in  an express written agreement of the receiving
bank, but are not otherwise recoverable.
(5)  Reasonable  attorney's  fees  are  recoverable  if   demand   for
compensation  under  subsection (1) or (2) is made and refused before an
action is brought on the claim. If a claim is  made  for  breach  of  an
agreement  under  subsection  (4) and the agreement does not provide for
damages, reasonable  attorney's  fees  are  recoverable  if  demand  for
compensation  under  subsection (4) is made and refused before an action
is brought on the claim.
(6) Except as stated in this section, the  liability  of  a  receiving
bank under subsections (1) and (2) may not be varied by agreement.
2023 New York Laws › UCC - Uniform Commercial Code › Article 4-A - Funds Transfers › Part 4 - Payment › 4-A-401 - Payment Date.

Section 4-A-401. Payment Date.
"Payment date" of a payment order means the day on which the amount of
  the  order  is payable to the beneficiary by the beneficiary's bank. The
  payment date may be determined by instruction of the sender  but  cannot
  be  earlier than the day the order is received by the beneficiary's bank
  and, unless otherwise determined, is the day the order  is  received  by
  the beneficiary's bank.
2023 New York Laws › UCC - Uniform Commercial Code › Article 4-A - Funds Transfers › Part 4 - Payment › 4-A-402 - Obligation of Sender to Pay Receiving Bank.

Section 4-A-402. Obligation of Sender to Pay Receiving Bank.
(1) This section is subject to Sections 4-A-205 and 4-A-207.
(2)  With respect to a payment order issued to the beneficiary's bank,
acceptance of the order by the bank obliges the sender to pay  the  bank
the  amount  of the order, but payment is not due until the payment date
of the order.
(3) This subsection is  subject  to  subsection  (5)  and  to  Section
4-A-303.  With  respect  to  a  payment order issued to a receiving bank
other than the beneficiary's  bank,  acceptance  of  the  order  by  the
receiving  bank  obliges  the  sender  to pay the bank the amount of the
sender's order. Payment by the sender is not  due  until  the  execution
date  of  the  sender's  order. The obligation of that sender to pay its
payment order is excused if the  funds  transfer  is  not  completed  by
acceptance  by  the  beneficiary's  bank  of a payment order instructing
payment to the beneficiary of that sender's payment order.
(4) If the sender of a payment  order  pays  the  order  and  was  not
obliged  to  pay  all  or  part  of  the amount paid, the bank receiving
payment is obliged to refund payment to the extent the  sender  was  not
obliged  to  pay.  Except  as  provided in Sections 4-A-204 and 4-A-304,
interest is payable on the refundable amount from the date of payment.
(5) If a funds transfer is not completed as stated in  subsection  (3)
and  an  intermediary  bank  is  obliged  to refund payment as stated in
subsection (4)  but  is  unable  to  do  so  because  not  permitted  by
applicable  law  or  because the bank suspends payments, a sender in the
funds transfer that executed a  payment  order  in  compliance  with  an
instruction,  as  stated  in  paragraph (a) of subsection (1) of Section
4-A-302, to route the funds transfer through that intermediary  bank  is
entitled  to  receive  or  retain payment from the sender of the payment
order that it accepted. The first sender  in  the  funds  transfer  that
issued  an  instruction requiring routing through that intermediary bank
is subrogated to the right of the bank that paid the  intermediary  bank
to refund as stated in subsection (4).
(6)  The right of the sender of a payment order to be excused from the
obligation to pay the order as stated in subsection (3)  or  to  receive
refund under subsection (4) may not be varied by agreement.
2023 New York Laws › UCC - Uniform Commercial Code › Article 4-A - Funds Transfers › Part 4 - Payment › 4-A-403 - Payment by Sender to Receiving Bank.

Section 4-A-403. Payment by Sender to Receiving Bank.
(1)  Payment  of  the sender's obligation under Section 4-A-402 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.
(b) If the sender is a  bank  and  the  sender  (i)  credited  an
account of the receiving bank with the sender, or (ii) 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.
(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.
(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  the  second  sentence  of  this  subsection has been
exercised.
(3) If two banks transmit  payment  orders  to  each  other  under  an
agreement  that  settlement of the obligations of each bank to the other
under Section 4-A-402 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 shall be 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.
(4) In a case not covered by subsection (1), the time when payment  of
the  sender's  obligation  under  subsection  (2)  or  subsection (3) of
Section 4-A-402 occurs is governed by applicable principles of law  that
determine when an obligation is satisfied.
2023 New York Laws › UCC - Uniform Commercial Code › Article 4-A - Funds Transfers › Part 4 - Payment › 4-A-404 - Obligation of Beneficiary's Bank to Pay and Give Notice to Beneficiary.

Section 4-A-404. Obligation of Beneficiary's Bank to Pay and Give Notice
to Beneficiary.
(1)  Subject  to subsection (5) of Section 4-A-211 and subsections (4)
and (5) of Section 4-A-405, 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.
(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. No other damages are recoverable. Reasonable  attorney's  fees
are  also  recoverable if demand for interest is made and refused before
an action is brought on the claim.
(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.
2023 New York Laws › UCC - Uniform Commercial Code › Article 4-A - Funds Transfers › Part 4 - Payment › 4-A-406 - Payment by Originator to Beneficiary; Discharge of Underlying Obligation.

Section 4-A-406. Payment  by  Originator  to  Beneficiary;  Discharge of
Underlying Obligation.
(1) Subject to subsection (5) of Section 4-A-211 and  subsections  (4)
and  (5) of Section 4-A-405, the originator of a funds transfer pays the
beneficiary of the originator's payment order (i) at the time a  payment
order   for   the   benefit  of  the  beneficiary  is  accepted  by  the
beneficiary's bank in the funds transfer and (ii) 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.
(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 (i)
the payment under subsection (1) was made by a means prohibited  by  the
contract  of  the  beneficiary  with respect to the obligation, (ii) 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, (iii) funds with  respect  to  the
order  were not withdrawn by the beneficiary or applied to a debt of the
beneficiary, and (iv) the beneficiary would suffer  a  loss  that  could
reasonably  have  been  avoided  if  payment  had  been  made by a means
complying with the contract. 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 subsection (1) of Section 4-A-404.
(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.
(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.
2023 New York Laws › UCC - Uniform Commercial Code › Article 4-A - Funds Transfers › Part 5 - Miscellaneous Provisions › 4-A-501 - Variation by Agreement and Effect of Funds-Transfer System Rule.

Section 4-A-501. 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.
(2)  "Funds-transfer  system  rule"  means a rule of an association of
banks (i) 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 (ii) 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. 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 subsection (3) of Section 4-A-404, subsection
(4) of Section 4-A-405, and subsection (3) of Section 4-A-507.
2023 New York Laws › UCC - Uniform Commercial Code › Article 4-A - Funds Transfers › Part 5 - Miscellaneous Provisions › 4-A-502 - Creditor Process Served on Receiving Bank; Set Off by Beneficiary's Bank.

Section 4-A-502. Creditor  Process  Served on Receiving Bank; Set Off by
Beneficiary's Bank.
(1)  As  used  in  this  section,  "creditor  process"   means   levy,
attachment,  garnishment,  notice  of  lien,  sequestration,  or similar
process issued by or on behalf of a  creditor  or  other  claimant  with
respect to an account.
(2)  This  subsection  applies  to 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.
(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 may be applied to satisfy creditor
process served on the bank with respect to the account.
(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.
(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.
(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.
2023 New York Laws › UCC - Uniform Commercial Code › Article 4-A - Funds Transfers › Part 5 - Miscellaneous Provisions › 4-A-503 - Injunction or Restraining Order With Respect to Funds Transfer.

Section 4-A-503. Injunction  or  Restraining Order With Respect to Funds
Transfer.
For proper cause and in compliance with applicable law,  a  court  may
  restrain  (i)  a person from issuing a payment order to initiate a funds
  transfer, (ii) an originator's bank from executing the payment order  of
  the  originator, or (iii) the beneficiary's bank from releasing funds to
  the beneficiary or the beneficiary from withdrawing the funds.  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.
2023 New York Laws › UCC - Uniform Commercial Code › Article 4-A - Funds Transfers › Part 5 - Miscellaneous Provisions › 4-A-504 - Order in Which Items and Payment Orders May Be Charged to Account; Order of Withdrawals From Account.

Section 4-A-504. 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.
(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.
2023 New York Laws › UCC - Uniform Commercial Code › Article 4-A - Funds Transfers › Part 5 - Miscellaneous Provisions › 4-A-505 - Preclusion of Objection to Debit of Customer's Account.

Section 4-A-505. 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.
2023 New York Laws › UCC - Uniform Commercial Code › Article 4-A - Funds Transfers › Part 5 - Miscellaneous Provisions › 4-A-506 - Rate of Interest.

Section 4-A-506. 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 (i) by agreement of the sender and receiving
bank, or (ii) by a funds-transfer system rule if the  payment  order  is
transmitted through a funds-transfer system.
(2)  If  the  amount  of interest is not determined by an agreement or
rule  as  stated  in  subsection  (l),  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.
2023 New York Laws › UCC - Uniform Commercial Code › Article 4-A - Funds Transfers › Part 5 - Miscellaneous Provisions › 4-A-507 - Choice of Law.

Section 4-A-507. 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.
(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.
(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.
(2) If the parties described in each paragraph of subsection (1)  have
made  an  agreement  selecting  the  law of a particular jurisdiction to
govern rights and obligations  between  each  other,  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.
(3)  A  funds-transfer  system rule may select the law of a particular
jurisdiction to govern (i) rights and obligations between  participating
banks  with  respect  to payment orders transmitted or processed through
the system, or (ii) the rights and obligations of some or all parties to
a funds transfer any part of which  is  carried  out  by  means  of  the
system.  A  choice  of  law  made  pursuant  to clause (i) is binding on
participating banks. A choice of law made pursuant  to  clause  (ii)  is
binding  on  the  originator,  other  sender, or a receiving bank having
notice that the  funds-transfer  system  might  be  used  in  the  funds
transfer  and  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  might  be  used in the funds transfer and 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.
(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.
(5) If a funds transfer is made by use of more than one funds-transfer
system  and  there  is  inconsistency between 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.
2023 New York Laws › UCC - Uniform Commercial Code › Article 5 - Letters of Credit › 5-103 - Scope.

Section 5--103. Scope.
(a) This  article  applies  to letters of credit and to certain rights
and obligations arising out of transactions involving letters of credit.
(b) 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.
(c) With the exception of this subsection, subsections (a) and (d)  of
this  section,  paragraphs  (9)  and  (10)  of subsection (a) of section
5--102, subsection (d) of section 5--106, and subsection (d) of  section
5--114,  and  except  to  the  extent  prohibited  in section 1--302 and
subsection (d) of section 5--117, 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.
(d) 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.
2023 New York Laws › UCC - Uniform Commercial Code › Article 5 - Letters of Credit › 5-104 - Formal Requirements.

Section 5--104. 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:
(a) by a signature, or
(b) in  accordance  with  the agreement of the parties or the standard
practice referred to in subsection (e) of section 5--108.
2023 New York Laws › UCC - Uniform Commercial Code › Article 5 - Letters of Credit › 5-106 - Issuance, Amendment, Cancellation, and Duration.

Section 5--106. Issuance, amendment, cancellation, and duration.
(a) 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.
(b) 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.
(c) 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.
(d) A  letter  of credit that states that it is perpetual expires five
years after its stated date of issuance, or if none is stated, after the
date on which it is issued.
2023 New York Laws › UCC - Uniform Commercial Code › Article 5 - Letters of Credit › 5-107 - Confirmer, Nominated Person, and Advisor.

Section 5--107. Confirmer, nominated person, and advisor.
(a) 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.
(b) A nominated person who is not a  confirmer  is  not  obligated  to
honor or otherwise give value for a presentation.
(c) 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.
(d) 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  (c)  of  this  section.  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.
2023 New York Laws › UCC - Uniform Commercial Code › Article 5 - Letters of Credit › 5-109 - 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.
2023 New York Laws › UCC - Uniform Commercial Code › Article 5 - Letters of Credit › 5-110 - Warranties.

Section 5--110. Warranties.
(a) If its presentation is honored, the beneficiary warrants:
(1) To 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 subsection (a) of section 5--109; and
(2) To 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.
(b) The  warranties  in subsection (a) of this section are in addition
to warranties arising under articles 3,  4,  7  and  8  because  of  the
presentation or transfer of documents covered by any of those articles.
2023 New York Laws › UCC - Uniform Commercial Code › Article 5 - Letters of Credit › 5-111 - 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.
2023 New York Laws › UCC - Uniform Commercial Code › Article 5 - Letters of Credit › 5-112 - Transfer of Letter of Credit.

Section 5--112. Transfer of letter of credit.
(a) Except as otherwise provided in section 5--113, 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.
(b) Even if a letter of credit provides that it is  transferable,  the
issuer may refuse to recognize or carry out a transfer if:
(1) the transfer would violate applicable law; or
(2) 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 which
is within the standard practice referred to in subsection (e)
of section  5--108  or  is  otherwise  reasonable  under  the
circumstances.
2023 New York Laws › UCC - Uniform Commercial Code › Article 5 - Letters of Credit › 5-113 - Transfer by Operation of Law.

Section 5--113. Transfer by operation of law.
(a) 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.
(b) 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 (e) of this section,  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  subsection
(e)  of section 5--108 or, in the absence of such a practice, compliance
with other reasonable procedures sufficient to protect the issuer.
(c) 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.
(d) Honor of a purported successor's apparently complying presentation
under subsection (a)  or  (b)  of  this  section  has  the  consequences
specified  in  subsection  (i)  of  section 5--108 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--109.
(e) An issuer  whose  rights  of  reimbursement  are  not  covered  by
subsection  (d)  of  this  section  or substantially similar law and any
confirmer or nominated person may decline to  recognize  a  presentation
under subsection (b) of this section.
(f) 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.
2023 New York Laws › UCC - Uniform Commercial Code › Article 5 - Letters of Credit › 5-114 - Assignment of Proceeds.

Section 5--114. Assignment of proceeds.
(a) 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.
(b) 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.
(c) An  issuer or nominated person need not recognize an assignment of
proceeds of a letter of credit until it consents to the assignment.
(d) 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.
(e) 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.
(f) 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
third 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.
2023 New York Laws › UCC - Uniform Commercial Code › Article 5 - Letters of Credit › 5-115 - Statute of Limitations.

Section 5--115. 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 cause of action accrues,
  whichever  occurs  later.  A  cause  of  action  accrues when the breach
  occurs, regardless of the aggrieved party's lack  of  knowledge  of  the
  breach.
2023 New York Laws › UCC - Uniform Commercial Code › Article 5 - Letters of Credit › 5-116 - Choice of Law and Forum.

Section 5--116. Choice of law and forum.
(a) The  liability  of  an  issuer,  nominated  person, or adviser for
action or omission is governed by the law of the jurisdiction chosen  by
an  agreement  in the form of a record signed or otherwise authenticated
by the affected parties in the manner provided in section 5--104 or by a
provision in the person's  letter  of  credit,  confirmation,  or  other
undertaking.  The  jurisdiction  whose  law  is chosen need not bear any
relation to the transaction.
(b) Unless subsection (a) of this section applies, the liability of an
issuer, nominated person, or adviser for action or omission is  governed
by  the  law  of  the  jurisdiction  in which the person is located. The
person is considered to be located  at  the  address  indicated  in  the
person's  undertaking. If more than one address is indicated, the person
is considered to be located at  the  address  from  which  the  person's
undertaking  was issued. For the purpose of jurisdiction, choice of law,
and recognition of interbranch letters of credit, but not enforcement of
a judgement, all branches of a bank are  considered  separate  juridical
entities  and  a bank is considered to be located at the place where its
relevant branch is considered to be located under this subsection.
(c) Except as otherwise provided in this subsection, the liability  of
an  issuer,  nominated  person,  or  adviser is governed by any rules of
custom or practice,  such  as  the  uniform  customs  and  practice  for
documentary  credits,  to  which  the letter of credit, confirmation, or
other undertaking is expressly made subject. If (1) this  article  would
govern  the  liability  of an issuer, nominated person, or adviser under
subsection (a) or (b) of  this  section,  (2) the  relevant  undertaking
incorporates  rules  of  custom  or  practice, and (3) there is conflict
between this article and those rules as  applied  to  that  undertaking,
those  rules  govern  except  to  the  extent  of  any conflict with the
nonvariable provisions specified in subsection (c) of section 5--103.
(d) If there is conflict between this article and article 3, 4, 4-A or
9, this article governs.
(e) The forum for settling disputes  arising  out  of  an  undertaking
within  this  article  may  be chosen in the manner and with the binding
effect that governing law may be chosen in  accordance  with  subsection
(a) of this section.
2023 New York Laws › UCC - Uniform Commercial Code › Article 5 - Letters of Credit › 5-117 - Subrogation of Issuer, Applicant, and Nominated Person.

Section 5--117. Subrogation of issuer, applicant, and nominated person.
(a) An  issuer  that honors a beneficiary's presentation is subrogated
to the rights of the beneficiary to the same extent  as  if  the  issuer
were  a  secondary  obligor  of  the  underlying  obligation owed to the
beneficiary and of the applicant to the same extent  as  if  the  issuer
were  the  secondary  obligor  of  the underlying obligation owed to the
applicant.
(b) An applicant that reimburses an issuer is subrogated to the rights
of the issuer against any beneficiary, presenter, or nominated person to
the same extent as if the applicant were the secondary  obligor  of  the
obligations  owed to the issuer and has the rights of subrogation of the
issuer to the rights of the beneficiary stated in subsection (a) of this
section.
(c) A nominated person who pays or gives  value  against  a  draft  or
demand  presented  under  a letter of credit is subrogated to the rights
of:
(1) the issuer against the applicant to the same extent as if the
nominated person were a secondary obligor of  the  obligation
owed to the issuer by the applicant;
(2) the beneficiary to the same extent as if the nominated person
were a secondary obligor of the underlying obligation owed to
the beneficiary; and
(3) the  applicant  to the same extent as if the nominated person
were a secondary obligor of the underlying obligation owed to
the applicant.
(d) Notwithstanding any agreement or term to the contrary, the  rights
of  subrogation stated in subsections (a) and (b) of this section do not
arise until the issuer honors the letter of credit or otherwise pays and
the rights in subsection (c) of this section  do  not  arise  until  the
nominated  person pays or otherwise gives value. Until then, the issuer,
nominated person, and the applicant do not  derive  under  this  section
present  or prospective rights forming the basis of a claim, defense, or
excuse.
2023 New York Laws › UCC - Uniform Commercial Code › Article 5 - Letters of Credit › 5-118 - Security Interest of Issuer or Nominated Person.

Section 5--118. Security Interest of Issuer or Nominated Person.
(a)  An  issuer  or  nominated  person  has  a  security interest in a
document presented  under  a  letter  of  credit  and  any  identifiable
proceeds  of  the  collateral to the extent that the issuer or nominated
person honors or gives value for the presentation.
(b) Subject to subsection (a), as 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 Article 9, but:
(1) a security agreement is not necessary to  make  the  security
interest enforceable under Section 9--203(b)(3);
(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, so
long as the debtor does not have possession of the  document,
the  security  interest  is perfected and has priority over a
conflicting security interest in the document.
2023 New York Laws › UCC - Uniform Commercial Code › Article 5 - Letters of Credit › 5-119 - Applicability.

Section 5--119. Applicability.
This  article applies to a letter of credit that is issued on or after
  the effective date of this article. This article does  not  apply  to  a
  transaction,  event,  obligation,  or  duty arising out of or associated
  with a letter of credit that was issued before  the  effective  date  of
  this article.
2023 New York Laws › UCC - Uniform Commercial Code › Article 5 - Letters of Credit › 5-120 - Savings Clause.

Section 5--120. Savings clause.
A  transaction  arising  out  of or associated with a letter of credit
  that was issued before the  effective  date  of  this  article  and  the
  rights,  obligations,  and  interests  flowing from that transaction are
  governed by any statute or other law amended or repealed by the  chapter
  of  the  laws which added this article as if repeal or amendment had not
  occurred and may be  terminated,  completed,  consummated,  or  enforced
  under that statute or other law.