400.5-103. Scope.

Scope.

400.5-103. (a) This article applies to letters of credit and tocertain rights and obligations arising out of transactions involvingletters of credit.

(b) The statement of a rule in this Article does not by itselfrequire, imply or negate application of the same or a different rule to asituation not provided for, or to a person not specified, in this Article.

(c) With the exception of this subsection, subsections (a) and (d),sections 400.5-102(a)(9) and (10), 400.5-106(d) and 400.5-114(d), andexcept to the extent prohibited in sections 400.1-102(3) and 400.5-117(d),the effect of this Article may be varied by agreement or by a provisionstated or incorporated by reference in an undertaking. A term in anagreement or undertaking generally excusing liability or generally limitingremedies for failure to perform obligations is not sufficient to varyobligations prescribed by this article.

(d) Rights and obligations of an issuer to a beneficiary or anominated person under a letter of credit are independent of the existence,performance or nonperformance of a contract or arrangement out of which theletter of credit arises or which underlies it, including contracts orarrangements between the issuer and the applicant and between the applicantand the beneficiary.

(L. 1963 p. 503 § 5-103, A.L. 1997 S.B. 6)

*No continuity with § 400.5-103 as repealed by L. 1997 S.B. 6 § A.