47-5118

47-5118. Security interest of issuer or
nominated person

A. 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.

B. 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 A of this section, the security interest
continues and is subject to chapter 9 of this title, but:

1. A security agreement is not necessary to make the security interest enforceable
under section 47-9203, subsection B, paragraph 3;

2. If the document is presented in a medium other than a written or other tangible
medium, the security interest is perfected; and

3. 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 conflicting security
interest in the document as long as the debtor does not have possession of the document.