Oregon Statutes 75.1180 – Security interest of issuer or nominated person
(1) An issuer or nominated person has a security interest in a document presented under a letter of credit to the extent that the issuer or nominated person honors or gives value for the presentation.
Terms Used In Oregon Statutes 75.1180
- 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:
(A) That is presented in a written or other medium permitted by the letter of credit or, unless prohibited by the letter of credit, by the standard practice referred to in ORS § 75. See Oregon Statutes 75.1020
- 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 Oregon Statutes 75.1020
- Letter of credit: means a definite undertaking that satisfies the requirements of ORS § 75. See Oregon Statutes 75.1020
- Nominated person: means a person whom the issuer:
(A) Designates or authorizes to pay, accept, negotiate or otherwise give value under a letter of credit; and
(B) Undertakes by agreement or custom and practice to reimburse. See Oregon Statutes 75.1020
- Person: includes individuals, corporations, associations, firms, partnerships, limited liability companies and joint stock companies. See Oregon Statutes 174.100
- Presentation: means delivery of a document to an issuer or nominated person for honor or giving of value under a letter of credit. See Oregon Statutes 75.1020
(2) As long as and to the extent that an issuer or nominated person has not been reimbursed or has not otherwise recovered the value given with respect to a security interest in a document under subsection (1) of this section, the security interest continues and is subject to ORS Chapter 79, but:
(a) A security agreement is not necessary to make the security interest enforceable under ORS § 79.0203 (2)(c);
(b) If the document is presented in a medium other than a written or other tangible medium, the security interest is perfected; and
(c) If the document is presented in a written or other tangible medium and is not a certificated security, chattel paper, a document of title, an instrument, or a letter of credit, the security interest is perfected and has priority over a conflicting security interest in the document as long as the debtor does not have possession of the document. [2001 c.445 § 148]