13 Guam Code Ann. § 5109
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Terms Used In 13 Guam Code Ann. § 5109
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Contract: A legal written agreement that becomes binding when signed.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
) An issuer’s obligation to its customer includes good faith and observance of any general banking usage but unless otherwise agreed does not include liability or responsibility
(a) For performance of the underlying contract for sale or other transaction between the customer and the beneficiary; or,
(b) For any act or omission of any person other than itself or its own branch or for loss or destruction of a draft, demand or document in transit or in the possession of others; or
(c) Based on knowledge or lack of knowledge of any usage of any particular trade.
(a) For performance of the underlying contract for sale or other transaction between the customer and the beneficiary; or,
(b) For any act or omission of any person other than itself or its own branch or for loss or destruction of a draft, demand or document in transit or in the possession of others; or
(c) Based on knowledge or lack of knowledge of any usage of any particular trade.
COL120106
13 Guam Code Ann. UNIFORM COMMERCIAL CODE
DIV. 5 LETTERS OF CREDIT
(2) An issuer must examine documents with care so as to ascertain that on their face they appear to comply with the terms of the credit but unless otherwise agreed assumes no liability or responsibility for the genuineness, falsification or effect of any document which appears on such examination to be regular on its face.
(3) A nonbank issuer is not bound by any banking usage of which it has no knowledge.