Utah Code 70A-5-110. Warranties
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(1) If its presentation is honored, the beneficiary warrants:
Terms Used In Utah Code 70A-5-110
- Applicant: means a person at whose request or for whose account a letter of credit is issued. See Utah Code 70A-5-102
- 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 Utah Code 70A-5-102
- Forgery: The fraudulent signing or alteration of another's name to an instrument such as a deed, mortgage, or check. The intent of the forgery is to deceive or defraud. Source: OCC
- Fraud: Intentional deception resulting in injury to another.
- 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 Utah Code 70A-5-102
- Letter of credit: means a definite undertaking that satisfies the requirements of Section
70A-5-104 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 Utah Code 70A-5-102 - Person: means :(24)(a) an individual;(24)(b) an association;(24)(c) an institution;(24)(d) a corporation;(24)(e) a company;(24)(f) a trust;(24)(g) a limited liability company;(24)(h) a partnership;(24)(i) a political subdivision;(24)(j) a government office, department, division, bureau, or other body of government; and(24)(k) any other organization or entity. See Utah Code 68-3-12.5
- Presentation: means delivery of a document to an issuer or nominated person for honor or giving of value under a letter of credit. See Utah Code 70A-5-102
- Uniform Commercial Code: A set of statutes enacted by the various states to provide consistency among the states' commercial laws. It includes negotiable instruments, sales, stock transfers, trust and warehouse receipts, and bills of lading. Source: OCC
(1)(a) to the issuer, any other person to whom presentation is made, and the applicant that there is no fraud or forgery of the kind described in Subsection70A-5-109(1) ; and(1)(b) to the applicant that the drawing does not violate any agreement between the applicant and beneficiary or any other agreement intended by them to be augmented by the letter of credit.
(2) The warranties in Subsection (1) are in addition to warranties arising under Title 70A, Chapter 3, Uniform Commercial Code – Negotiable Instruments , Chapter 4, Uniform Commercial Code – Bank Deposits and Collections , Chapter 7a, Uniform Commercial Code – Documents of Title , and Chapter 8, Uniform Commercial Code – Investment Securities , because of the presentation or transfer of documents covered by any of those chapters.