400.5-102. Definitions.
Definitions.
400.5-102. (a) In this article:
(1) "Adviser" means a person who, at the request of the issuer, aconfirmer or another adviser, notifies or requests another adviser tonotify the beneficiary that a letter of credit has been issued, confirmedor amended;
(2) "Applicant" means a person at whose request or for whose accounta letter of credit is issued. The term includes a person who requests anissuer to issue a letter of credit on behalf of another if the personmaking the request undertakes an obligation to reimburse the issuer;
(3) "Beneficiary" means a person who under the terms of a letter ofcredit is entitled to have the person's complying presentation honored.The term includes a person to whom drawing rights have been transferredunder a transferable letter of credit;
(4) "Confirmer" means a nominated person who undertakes, at therequest or with the consent of the issuer, to honor a presentation under aletter of credit issued by another;
(5) "Dishonor" of a letter of credit means failure to timely honor orto take an interim action, such as acceptance of a draft, that may berequired by the letter of credit;
(6) "Document" means a draft or other demand, document of title,investment security, certificate, invoice or other record, statement, orrepresentation of fact, law, right or opinion:
(i) Which is presented in a written or other medium permitted by theletter of credit or, unless prohibited by the letter of credit, by thestandard practice referred to in section 400.5-108(e); and
(ii) Which is capable of being examined for compliance with the termsand conditions of the letter of credit. A document may not be oral;
(7) "Good faith" means honesty in fact in the conduct or transactionconcerned;
(8) "Honor" of a letter of credit means performance of the issuer'sundertaking 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 acceptanceof a draft and, at maturity, its payment; or
(iii) If the letter of credit provides for incurring a deferredobligation, upon incurring the obligation and, at maturity, itsperformance;
(9) "Issuer" means a bank or other person that issues a letter ofcredit, but does not include an individual who makes an engagement forpersonal, family or household purposes;
(10) "Letter of credit" means a definite undertaking that satisfiesthe requirements of section 400.5-104 by an issuer to a beneficiary at therequest or for the account of an applicant or, in the case of a financialinstitution, to itself or for its own account, to honor a documentarypresentation 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 otherwisegive 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 ornominated person for honor or giving of value under a letter of credit;
(13) "Presenter" means a person making a presentation as or on behalfof a beneficiary or nominated person;
(14) "Record" means information that is inscribed on a tangiblemedium, or that is stored in an electronic or other medium and isretrievable in perceivable form;
(15) "Successor of a beneficiary" means a person who succeeds tosubstantially all of the rights of a beneficiary by operation of law,including a corporation with or into which the beneficiary has been mergedor consolidated, an administrator, executor, personal representative,trustee in bankruptcy, debtor in possession, liquidator and receiver.
(b) Definitions in other articles of this chapter apply to thisArticle and the section in which they appear are:
"Accept" or "Acceptance". Section 400.3-409.
"Value". Sections 400.3-303, 400.4-211.
(c) Article 1 of this chapter contains certain additional generaldefinitions and principles of construction and interpretation applicablethroughout this Article.
(L. 1963 p. 503 § 5-102, A.L. 1965 p. 595, A.L. 1997 S.B. 6)*No continuity with § 400.5-102 as repealed by L. 1997 S.B. 6 § A.