§ 25-5-102. Definitions.
§25‑5‑102. Definitions.
(a) In this Article:
(1) "Adviser"means a person who, at the request of the issuer, a confirmer, or anotheradviser, notifies or requests another adviser to notify the beneficiary that aletter of credit has been issued, confirmed, or amended.
(2) "Applicant"means a person at whose request or for whose account a letter of credit isissued. The term includes a person who requests an issuer to issue a letter ofcredit on behalf of another if the person making the request undertakes anobligation to reimburse the issuer.
(3) "Beneficiary"means a person who under the terms of a letter of credit is entitled to haveits complying presentation honored. The term includes a person to whom drawingrights have been transferred under a transferable letter of credit.
(4) "Confirmer"means a nominated person who undertakes, at the request or with the consent ofthe issuer, to honor a presentation under a letter of credit issued by another.
(5) "Dishonor"of a letter of credit means failure timely to honor or to take an interimaction, such as acceptance of a draft, that may be required by the letter ofcredit.
(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 mediumpermitted by the letter of credit or, unless prohibited by the letter ofcredit, by the standard practice referred to in G.S. 25‑5‑108(e)and (ii) which is capable of being examined for compliance with the terms andconditions of the letter of credit. A document may not be oral.
(7) "Goodfaith" means honesty in fact in the conduct or transaction concerned.
(8) "Honor" ofa letter of credit means performance of the issuer's undertaking in the letterof credit to pay or deliver an item of value. Unless the letter of creditotherwise provides, "honor" occurs:
a. Upon payment;
b. If the letter ofcredit provides for acceptance, upon acceptance of a draft and, at maturity,its payment; or
c. If the letter ofcredit provides for incurring a deferred obligation, upon incurring theobligation and, at maturity, its performance.
(9) "Issuer"means a bank or other person that issues a letter of credit, but does not includean individual who makes an engagement for personal, family, or householdpurposes.
(10) "Letter ofcredit" means a definite undertaking that satisfies the requirements ofG.S. 25‑5‑104 by an issuer to a beneficiary at the request or forthe account of an applicant or, in the case of a financial institution, toitself or for its own account, to honor a documentary presentation by paymentor delivery of an item of value.
(11) "Nominatedperson" means a person whom the issuer (i) designates or authorizes topay, 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 orgiving of value under a letter of credit.
(13) "Presenter"means a person making a presentation as or on behalf of a beneficiary ornominated person.
(14) "Record"means information that is inscribed on a tangible medium or that is stored inan electronic or other medium and is retrievable in perceivable form.
(15) "Successor of abeneficiary" means a person who succeeds to substantially all of therights of a beneficiary by operation of law, including a corporation with orinto which the beneficiary has been merged or consolidated, an administrator,executor, personal representative, trustee in bankruptcy, debtor in possession,liquidator, and receiver.
(b) Definitions inother Articles of this Chapter applying to this Article and the sections inwhich they appear are:
"Accept" or"Acceptance" G.S. 25‑3‑409.
"Value" G.S. 25‑3‑303,G.S. 25‑4‑209.
(c) Article 1 of thisChapter contains certain additional general definitions and principles ofconstruction and interpretation applicable throughout this Article. (1999‑73,s. 1.)