Subrogation of issuer, applicant and nominated person.
400.5-117. (a) An issuer that honors a beneficiary's presentationis subrogated to the rights of the beneficiary to the same extent as if theissuer were a secondary obligor of the underlying obligation owed to thebeneficiary and of the applicant to the same extent as if the issuer werethe secondary obligor of the underlying obligation owed to the applicant.
(b) An applicant that reimburses an issuer is subrogated to therights of the issuer against any beneficiary, presenter or nominated personto the same extent as if the applicant were the secondary obligor of theobligations owed to the issuer and has the rights of subrogation of theissuer to the rights of the beneficiary stated in subsection (a).
(c) A nominated person who pays or gives value against a draft ordemand presented under a letter of credit is subrogated to the rights of:
(1) The issuer against the applicant to the same extent as if thenominated person were a secondary obligor of the obligation owed to theissuer by the applicant;
(2) The beneficiary to the same extent as if the nominated personwere a secondary obligor of the underlying obligation owed to thebeneficiary; and
(3) The applicant to the same extent as if the nominated person werethe secondary obligor of the underlying obligation owed to the applicant.
(d) Notwithstanding any agreement or term to the contrary, the rightsof subrogation stated in subsections (a) and (b) do not arise until theissuer honors the letter of credit or otherwise pays and the rights insubsection (c) do not arise until the nominated person pays or otherwisegives value. Until then, the issuer, nominated person, and the applicantdo not derive under this section present or prospective rights forming thebasis of a claim, defense or excuse.
(L. 1963 p. 503 § 5-117, A.L. 1997 S.B. 6)
*No continuity with § 400.5-117 as repealed by L. 1997 S.B. 6 § A.
Subrogation of issuer, applicant and nominated person.
400.5-117. (a) An issuer that honors a beneficiary's presentationis subrogated to the rights of the beneficiary to the same extent as if theissuer were a secondary obligor of the underlying obligation owed to thebeneficiary and of the applicant to the same extent as if the issuer werethe secondary obligor of the underlying obligation owed to the applicant.
(b) An applicant that reimburses an issuer is subrogated to therights of the issuer against any beneficiary, presenter or nominated personto the same extent as if the applicant were the secondary obligor of theobligations owed to the issuer and has the rights of subrogation of theissuer to the rights of the beneficiary stated in subsection (a).
(c) A nominated person who pays or gives value against a draft ordemand presented under a letter of credit is subrogated to the rights of:
(1) The issuer against the applicant to the same extent as if thenominated person were a secondary obligor of the obligation owed to theissuer by the applicant;
(2) The beneficiary to the same extent as if the nominated personwere a secondary obligor of the underlying obligation owed to thebeneficiary; and
(3) The applicant to the same extent as if the nominated person werethe secondary obligor of the underlying obligation owed to the applicant.
(d) Notwithstanding any agreement or term to the contrary, the rightsof subrogation stated in subsections (a) and (b) do not arise until theissuer honors the letter of credit or otherwise pays and the rights insubsection (c) do not arise until the nominated person pays or otherwisegives value. Until then, the issuer, nominated person, and the applicantdo not derive under this section present or prospective rights forming thebasis of a claim, defense or excuse.
(L. 1963 p. 503 § 5-117, A.L. 1997 S.B. 6)
*No continuity with § 400.5-117 as repealed by L. 1997 S.B. 6 § A.
Subrogation of issuer, applicant and nominated person.
400.5-117. (a) An issuer that honors a beneficiary's presentationis subrogated to the rights of the beneficiary to the same extent as if theissuer were a secondary obligor of the underlying obligation owed to thebeneficiary and of the applicant to the same extent as if the issuer werethe secondary obligor of the underlying obligation owed to the applicant.
(b) An applicant that reimburses an issuer is subrogated to therights of the issuer against any beneficiary, presenter or nominated personto the same extent as if the applicant were the secondary obligor of theobligations owed to the issuer and has the rights of subrogation of theissuer to the rights of the beneficiary stated in subsection (a).
(c) A nominated person who pays or gives value against a draft ordemand presented under a letter of credit is subrogated to the rights of:
(1) The issuer against the applicant to the same extent as if thenominated person were a secondary obligor of the obligation owed to theissuer by the applicant;
(2) The beneficiary to the same extent as if the nominated personwere a secondary obligor of the underlying obligation owed to thebeneficiary; and
(3) The applicant to the same extent as if the nominated person werethe secondary obligor of the underlying obligation owed to the applicant.
(d) Notwithstanding any agreement or term to the contrary, the rightsof subrogation stated in subsections (a) and (b) do not arise until theissuer honors the letter of credit or otherwise pays and the rights insubsection (c) do not arise until the nominated person pays or otherwisegives value. Until then, the issuer, nominated person, and the applicantdo not derive under this section present or prospective rights forming thebasis of a claim, defense or excuse.
(L. 1963 p. 503 § 5-117, A.L. 1997 S.B. 6)
*No continuity with § 400.5-117 as repealed by L. 1997 S.B. 6 § A.
