2023 New York Laws › UCC - Uniform Commercial Code › Article 5 - Letters of Credit › 5-102 - Definitions.

Section 5--102. Definitions.
(a) In this article:
(1) "Adviser" means a person who, at the request of the issuer, a
confirmer,  or  another adviser, notifies or requests another
adviser to notify the beneficiary that a letter of credit has
been issued, confirmed, or amended.
(2) "Applicant" means a person at  whose  request  or  for  whose
account  a  letter  of  credit is issued. The term includes a
person who requests an issuer to issue a letter of credit  on
behalf of another if the person making the request undertakes
an obligation to reimburse the issuer.
(3) "Beneficiary"  means a person who under the terms of a letter
of credit is entitled  to  have  its  complying  presentation
honored.  The  term  includes a person to whom drawing rights
have been transferred under a transferable letter of credit.
(4) "Confirmer" means a nominated person who undertakes,  at  the
request  or  with  the  consent  of  the  issuer,  to honor a
presentation under a letter of credit issued by another.
(5) "Dishonor" of a letter of  credit  means  failure  to  timely
honor  or  to take an interim action, such as acceptance of a
draft, that may be required by the letter of credit.
(6) "Document" means a draft or other demand, document of  title,
investment  security,  certificate, invoice, or other record,
statement, or representation of fact, law, right, or opinion:
(i) which is presented in a written or other medium permitted
by the letter of credit  or,  unless  prohibited  by  the
letter of credit, by the standard practice referred to in
subsection (e) of section 5--108; and
(ii) which  is  capable  of being examined for compliance with
the terms and conditions  of  the  letter  of  credit.  A
document may not be oral.
(7) "Good  faith"  means  honesty  in  fact  in  the  conduct  or
transaction concerned.
(8) "Honor" of a  letter  of  credit  means  performance  of  the
issuer's  undertaking  in  the  letter  of  credit  to pay or
deliver an item of  value.    Unless  the  letter  of  credit
otherwise provides, "honor" occurs:
(i) upon payment,
(ii) if  the  letter  of  credit provides for acceptance, upon
acceptance of a draft and, at maturity, its payment, or
(iii) if the letter of credit provides for incurring a deferred
obligation,  upon  incurring  the  obligation   and,   at
maturity, its performance.
(9) "Issuer" means a bank or other person that issues a letter of
credit,  but  does  not  include  an  individual who makes an
engagement for personal, family, or household purposes.
(10) "Letter  of  credit"  means  a  definite   undertaking   that
satisfies  the requirements of section 5--104 by an issuer to
a beneficiary at  the  request  or  for  the  account  of  an
applicant  or,  in  the  case  of a financial institution, to
itself or  for  its  own  account,  to  honor  a  documentary
presentation by payment or delivery of an item of value.
(11) "Nominated person" means a person whom the issuer:
(i) designates  or  authorizes  to pay, accept, negotiate, or
otherwise give value under a letter of credit, and
(ii) undertakes  by  agreement  or  custom  and  practice   to
reimburse.
(12) "Presentation"  means  delivery of a document to an issuer or
nominated person for honor or giving of value under a  letter
of credit.
(13) "Presenter"  means  a  person  making a presentation as or on
behalf of a beneficiary or nominated person.
(14) "Record" means information that is inscribed  on  a  tangible
medium,  or  that  is stored in an electronic or other medium
and is retrievable in perceivable form.
(15) "Successor of a beneficiary" means a person who  succeeds  to
substantially all of the rights of a beneficiary by operation
of  law,  including  a  corporation  with  or  into which the
beneficiary   has   been   merged   or    consolidated,    an
administrator,  executor, personal representative, trustee in
bankruptcy, debtor in possession, liquidator, and receiver.
(b) Definitions in other articles applying to  this  article  and  the
sections in which they appear are:
"Accept" or "acceptance"                  Section 3--410
"Value"                                   Sections 3--303, 4--209.
(c) Article  1  contains  certain  additional  general definitions and
principles of construction and interpretation applicable throughout this
article.