Maine Revised Statutes Title 11 Sec. 5-1103 – Scope
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(1). This Article applies to letters of credit and to certain rights and obligations arising out of transactions involving letters of credit.
[PL 1997, c. 429, Pt. A, §2 (NEW); PL 1997, c. 429, Pt. A, §4 (AFF).]
Terms Used In Maine Revised Statutes Title 11 Sec. 5-1103
- Applicant: means a person at whose request or for whose account a letter of credit is issued. See Maine Revised Statutes Title 11 Sec. 5-1102
- 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
- Beneficiary: means a person who under the terms of a letter of credit is entitled to have its complying presentation honored. See Maine Revised Statutes Title 11 Sec. 5-1102
- Contract: A legal written agreement that becomes binding when signed.
- Issuer: means a bank or other person that issues a letter of credit, but does not include an individual who makes an engagement for personal, family or household purposes. See Maine Revised Statutes Title 11 Sec. 5-1102
- Letter of credit: means a definite undertaking that satisfies the requirements of section 5?1104 by an issuer to a beneficiary at the request or for the account of an applicant or, in the case of a financial institution, to itself or for its own account, to honor a documentary presentation by payment or delivery of an item of value. See Maine Revised Statutes Title 11 Sec. 5-1102
- Nominated person: means a person whom the issuer: (i) Designates or authorizes to pay, accept, negotiate or otherwise give value under a letter of credit; and(ii) Undertakes by agreement or custom and practice to reimburse. See Maine Revised Statutes Title 11 Sec. 5-1102(2). The statement of a rule in this Article does not by itself require, imply or negate application of the same or a different rule to a situation not provided for, or to a person not specified, in this Article.
[PL 1997, c. 429, Pt. A, §2 (NEW); PL 1997, c. 429, Pt. A, §4 (AFF).]
(3). With the exception of this subsection, subsections (1) and (4), section 5?1102, subsection (1), paragraphs (i) and (j), section 5?1106, subsection (4), and section 5?1114, subsection (4), and except to the extent prohibited in section 1?1302 and section 5?1117, subsection (4), the effect of this Article may be varied by agreement or by a provision stated or incorporated by reference in an undertaking. A term in an agreement or undertaking generally excusing liability or generally limiting remedies for failure to perform obligations is not sufficient to vary obligations prescribed by this Article.[PL 2009, c. 325, Pt. B, §22 (AMD); PL 2009, c. 325, Pt. B, §27 (AFF).]
(4). Rights and obligations of an issuer to a beneficiary or a nominated person under a letter of credit are independent of the existence, performance or nonperformance of a contract or arrangement out of which the letter of credit arises or which underlies it, including contracts or arrangements between the issuer and the applicant and between the applicant and the beneficiary.[PL 1997, c. 429, Pt. A, §2 (NEW); PL 1997, c. 429, Pt. A, §4 (AFF).]
SECTION HISTORYPL 1997, c. 429, §A2 (NEW). PL 1997, c. 429, §A4 (AFF). PL 2009, c. 325, Pt. B, §22 (AMD). PL 2009, c. 325, Pt. B, §27 (AFF).