State Codes and Statutes

Statutes > New-york > Ucc > Article-5 > 5-117

Section 5--117. Subrogation of issuer, applicant, and nominated person.    (a) An  issuer  that honors a beneficiary's presentation is subrogated  to the rights of the beneficiary to the same extent  as  if  the  issuer  were  a  secondary  obligor  of  the  underlying  obligation owed to the  beneficiary and of the applicant to the same extent  as  if  the  issuer  were  the  secondary  obligor  of  the underlying obligation owed to the  applicant.    (b) An applicant that reimburses an issuer is subrogated to the rights  of the issuer against any beneficiary, presenter, or nominated person to  the same extent as if the applicant were the secondary  obligor  of  the  obligations  owed to the issuer and has the rights of subrogation of the  issuer to the rights of the beneficiary stated in subsection (a) of this  section.    (c) A nominated person who pays or gives  value  against  a  draft  or  demand  presented  under  a letter of credit is subrogated to the rights  of:         (1) the issuer against the applicant to the same extent as if the             nominated person were a secondary obligor of  the  obligation             owed to the issuer by the applicant;         (2) the beneficiary to the same extent as if the nominated person             were a secondary obligor of the underlying obligation owed to             the beneficiary; and         (3) the  applicant  to the same extent as if the nominated person             were a secondary obligor of the underlying obligation owed to             the applicant.    (d) Notwithstanding any agreement or term to the contrary, the  rights  of  subrogation stated in subsections (a) and (b) of this section do not  arise until the issuer honors the letter of credit or otherwise pays and  the rights in subsection (c) of this section  do  not  arise  until  the  nominated  person pays or otherwise gives value. Until then, the issuer,  nominated person, and the applicant do not  derive  under  this  section  present  or prospective rights forming the basis of a claim, defense, or  excuse.

State Codes and Statutes

Statutes > New-york > Ucc > Article-5 > 5-117

Section 5--117. Subrogation of issuer, applicant, and nominated person.    (a) An  issuer  that honors a beneficiary's presentation is subrogated  to the rights of the beneficiary to the same extent  as  if  the  issuer  were  a  secondary  obligor  of  the  underlying  obligation owed to the  beneficiary and of the applicant to the same extent  as  if  the  issuer  were  the  secondary  obligor  of  the underlying obligation owed to the  applicant.    (b) An applicant that reimburses an issuer is subrogated to the rights  of the issuer against any beneficiary, presenter, or nominated person to  the same extent as if the applicant were the secondary  obligor  of  the  obligations  owed to the issuer and has the rights of subrogation of the  issuer to the rights of the beneficiary stated in subsection (a) of this  section.    (c) A nominated person who pays or gives  value  against  a  draft  or  demand  presented  under  a letter of credit is subrogated to the rights  of:         (1) the issuer against the applicant to the same extent as if the             nominated person were a secondary obligor of  the  obligation             owed to the issuer by the applicant;         (2) the beneficiary to the same extent as if the nominated person             were a secondary obligor of the underlying obligation owed to             the beneficiary; and         (3) the  applicant  to the same extent as if the nominated person             were a secondary obligor of the underlying obligation owed to             the applicant.    (d) Notwithstanding any agreement or term to the contrary, the  rights  of  subrogation stated in subsections (a) and (b) of this section do not  arise until the issuer honors the letter of credit or otherwise pays and  the rights in subsection (c) of this section  do  not  arise  until  the  nominated  person pays or otherwise gives value. Until then, the issuer,  nominated person, and the applicant do not  derive  under  this  section  present  or prospective rights forming the basis of a claim, defense, or  excuse.

State Codes and Statutes

State Codes and Statutes

Statutes > New-york > Ucc > Article-5 > 5-117

Section 5--117. Subrogation of issuer, applicant, and nominated person.    (a) An  issuer  that honors a beneficiary's presentation is subrogated  to the rights of the beneficiary to the same extent  as  if  the  issuer  were  a  secondary  obligor  of  the  underlying  obligation owed to the  beneficiary and of the applicant to the same extent  as  if  the  issuer  were  the  secondary  obligor  of  the underlying obligation owed to the  applicant.    (b) An applicant that reimburses an issuer is subrogated to the rights  of the issuer against any beneficiary, presenter, or nominated person to  the same extent as if the applicant were the secondary  obligor  of  the  obligations  owed to the issuer and has the rights of subrogation of the  issuer to the rights of the beneficiary stated in subsection (a) of this  section.    (c) A nominated person who pays or gives  value  against  a  draft  or  demand  presented  under  a letter of credit is subrogated to the rights  of:         (1) the issuer against the applicant to the same extent as if the             nominated person were a secondary obligor of  the  obligation             owed to the issuer by the applicant;         (2) the beneficiary to the same extent as if the nominated person             were a secondary obligor of the underlying obligation owed to             the beneficiary; and         (3) the  applicant  to the same extent as if the nominated person             were a secondary obligor of the underlying obligation owed to             the applicant.    (d) Notwithstanding any agreement or term to the contrary, the  rights  of  subrogation stated in subsections (a) and (b) of this section do not  arise until the issuer honors the letter of credit or otherwise pays and  the rights in subsection (c) of this section  do  not  arise  until  the  nominated  person pays or otherwise gives value. Until then, the issuer,  nominated person, and the applicant do not  derive  under  this  section  present  or prospective rights forming the basis of a claim, defense, or  excuse.