75.1010 Short title
This chapter may be cited as Uniform Commercial Code–Letters of Credit.
Oregon Revised Statutes
Chapter 75 — Letters of Credit
18 sections75.1020 Definitions
As used in this chapter: “Adviser” means a person who, at the request of the issuer, a confirmer or another adviser, notifies or requests another adviser to notify the beneficiary that a letter of credit has been issued, confirmed or amended. “Applicant” means a person at whose request or for whose account a letter of credit is issued. “Applicant” includes…
75.1030 Application of chapter
This chapter applies to letters of credit and to certain rights and obligations arising out of transactions involving letters of credit. The statement of a rule in this chapter does not by itself require, imply or negate application of the same or different rule to a situation not provided for, or to a person not specified in this chapter. With the excepti…
75.1040 Formal requirements
A letter of credit, confirmation, advice, transfer, amendment or cancellation may be issued in any form that is a signed record.
75.1050 Consideration
Consideration is not required to issue, amend, transfer or cancel a letter of credit, advice or confirmation.
75.1060 Issuance, amendment, cancellation and duration
A letter of credit is issued and becomes enforceable according to its terms against the issuer when the issuer sends or otherwise transmits it to the person requested to advise or to the beneficiary. A letter of credit is revocable only if it so provides. After a letter of credit is issued, rights and obligations of a beneficiary, applicant, confirmer and i…
75.1070 Confirmer, nominated person and adviser
A confirmer is directly obligated on a letter of credit and has the rights and obligations of an issuer to the extent of its confirmation. The confirmer also has rights against and obligations to the issuer as if the issuer were an applicant and the confirmer had issued the letter of credit at the request and for the account of the issuer. A nominated perso…
75.1080 Issuer’s rights and obligations
Except as provided in ORS 75.1090, an issuer shall honor a presentation that, as determined by the standard practice referred to in subsection (5) of this section, appears on its face strictly to comply with the terms and conditions of the letter of credit. Except as provided in ORS 75.1130 and unless otherwise agreed with the applicant, an issuer shall dish…
75.1090 Fraud and forgery
If a presentation is made that appears on its face strictly to comply with the terms and conditions of the letter of credit, but a required document is forged or materially fraudulent, or honor of the presentation would facilitate a material fraud by the beneficiary on the issuer or applicant: The issuer shall honor the presentation, if honor is demanded by…
75.1100 Warranties
If its presentation is honored, the beneficiary warrants: To the issuer, any other person to whom presentation is made and to the applicant that there is no fraud or forgery of the kind described in ORS 75.1090 (1); and To the applicant that the drawing does not violate any agreement between the applicant and beneficiary or any other agreement intended by …
75.1110 Remedies
If an issuer wrongfully dishonors or repudiates its obligation to pay money under a letter of credit before presentation, the beneficiary, successor or nominated person presenting on its own behalf may recover from the issuer the amount that is the subject of the dishonor or repudiation. If the issuer’s obligation under the letter of credit is not for the pa…
75.1120 Transfer of letter of credit
Except as provided in ORS 75.1130, unless a letter of credit provides that it is transferable, the right of a beneficiary to draw or otherwise demand performance under a letter of credit may not be transferred. Even if a letter of credit provides that it is transferable, the issuer may refuse to recognize or carry out a transfer if: The transfer would viol…
75.1130 Successor of beneficiary
A successor of a beneficiary may consent to amendments, sign and present documents and receive payment or other items of value in the name of the beneficiary without disclosing its status as a successor. A successor of a beneficiary may consent to amendments, sign and present documents and receive payment or other items of value in its own name as the discl…
75.1140 Assignment of proceeds
As used in this section, “proceeds of a letter of credit” means the cash, check, accepted draft or other item of value paid or delivered upon honor or giving of value by the issuer or any nominated person under the letter of credit. “Proceeds of a letter of credit” does not include a beneficiary’s drawing rights or documents presented by the beneficiary. A …
75.1150 Statute of limitations
An action to enforce a right or obligation arising under this chapter must be commenced within one year after the expiration date of the relevant letter of credit or one year after the cause of action accrues, whichever occurs later. A cause of action accrues when the breach occurs, regardless of the aggrieved party’s lack of knowledge of the breach.
75.1160 Choice of law and forum
The liability of an issuer, nominated person or adviser for action or omission is governed by the law of the jurisdiction chosen by an agreement in the form of a record signed by the affected parties or by a provision in the person’s letter of credit, confirmation or other undertaking. The jurisdiction whose law is chosen need not bear any relation to the tr…
75.1170 Subrogation of issuer, applicant and nominated person
An issuer that honors a beneficiary’s presentation is subrogated to the rights of the beneficiary to the same extent as if the issuer were a secondary obligor of the underlying obligation owed to the beneficiary and of the applicant to the same extent as if the issuer were the secondary obligor of the underlying obligation owed to the applicant. An applican…
75.1180 Security interest of issuer or nominated person
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. 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 …