§490:5-110  Warranties.  (a)  If its
presentation is honored, the beneficiary warrants:



(1)  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 section 490:5-109(a); and



(2)  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.



(b)  The warranties in subsection (a) are in
addition to warranties arising under articles 3, 4, 7, and 8 because of the
presentation or transfer of documents covered by any of those articles. [L
1996, c 39, pt of §1]