§490:5-111  Remedies.  (a)  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 payment of money, the claimant may obtain
specific performance or, at the claimant's election, recover an amount equal to
the value of performance from the issuer.  In either case, the claimant may
also recover incidental but not consequential damages.  The claimant is not
obligated to take action to avoid damages that might be due from the issuer
under this subsection.  If, although not obligated to do so, the claimant
avoids damages, the claimant's recovery from the issuer shall be reduced by the
amount of damages avoided.  The issuer has the burden of proving the amount of
damages avoided.  In the case of repudiation the claimant need not present any
document.



(b)  If an issuer wrongfully dishonors a draft
or demand presented under a letter of credit or honors a draft or demand in
breach of its obligation to the applicant, the applicant may recover damages
resulting from the breach, including incidental but not consequential damages,
less any amount saved as a result of the breach.



(c)  If an adviser or nominated person other
than a confirmer breaches an obligation under this article or an issuer
breaches an obligation not covered in subsection (a) or (b), a person to whom
the obligation is owed may recover damages resulting from the breach, including
incidental but not consequential damages, less any amount saved as a result of
the breach.  To the extent of the confirmation, a confirmer has the liability
of an issuer specified in this subsection and subsections (a) and (b).



(d)  An issuer, nominated person, or adviser
who is found liable under subsection (a), (b), or (c) shall pay interest on the
amount owed thereunder from the date of wrongful dishonor or other appropriate
date.



(e)  Reasonable attorneys' fees and other
expenses of litigation shall be awarded to the prevailing party in an action in
which a remedy is sought under this article.



(f)  Damages that would otherwise be payable by
a party for breach of an obligation under this article may be liquidated by
agreement or undertaking, but only in an amount or by a formula that is
reasonable in light of the harm anticipated. [L 1996, c 39, pt of §1]