[§490:5-118]  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)  So 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), the security interest continues and is subject to article
9, but:



(1)  A security agreement is not necessary to make the
security interest enforceable under section 490:9-203(b)(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 a conflicting security interest in the
document so long as the debtor does not have possession of the document. [L
2000, c 241, §2]