400.5-106. Issuance, amendment, cancellation and duration.

Issuance, amendment, cancellation and duration.

400.5-106. (a) A letter of credit is issued and becomesenforceable according to its terms against the issuer when the issuer sendsor otherwise transmits it to the person requested to advise or to thebeneficiary. A letter of credit is revocable only if it so provides.

(b) After a letter of credit is issued, rights and obligations of abeneficiary, applicant, confirmer and issuer are not affected by anamendment or cancellation to which that person has not consented except tothe extent the letter of credit provides that it is revocable or that theissuer may amend or cancel the letter of credit without that consent.

(c) If there is no stated expiration date or other provision thatdetermines its duration, a letter of credit expires one year after itsstated date of issuance or, if none is stated, after the date on which itis issued.

(d) A letter of credit that states that it is perpetual expires fiveyears after its stated date of issuance, or if none is stated, after thedate on which it is issued.

(L. 1963 p. 503 § 5-106, A.L. 1997 S.B. 6)