Section 45.05.110. Warranties.

   (a) If its presentation is honored, the beneficiary warrants to
        (1) the issuer, another person to whom presentation is made, and the applicant that there is no fraud or forgery of the kind described in AS 45.05.109(a); and
        (2) the applicant that the drawing does not violate an agreement between the applicant and beneficiary or another agreement intended by them to be augmented by the letter of credit.
   (b) The warranties in (a) of this section are in addition to warranties arising under AS 45.03, AS 45.04, AS 45.07, and AS 45.08 because of the presentation or transfer of documents covered by those chapters.

Authorities

45.05.108

Notes

References

AS 45.05.108 Issuer's rights and obligations.

History

(Sec. 5.110 ch 114 SLA 1962; am Sec. 12 ch 75 SLA 1999)