§25‑5‑117. Subrogation of issuer, applicant, and nominated person.
(a) An issuer thathonors a beneficiary's presentation is subrogated to the rights of thebeneficiary to the same extent as if the issuer were a secondary obligor of theunderlying obligation owed to the beneficiary and of the applicant to the sameextent as if the issuer were the secondary obligor of the underlying obligationowed to the applicant.
(b) An applicant thatreimburses an issuer is subrogated to the rights of the issuer against anybeneficiary, presenter, or nominated person to the same extent as if theapplicant were the secondary obligor of the obligations owed to the issuer andhas the rights of subrogation of the issuer to the rights of the beneficiarystated in subsection (a) of this section.
(c) A nominated personwho pays or gives value against a draft or demand presented under a letter ofcredit is subrogated to the rights of:
(1) The issuer againstthe applicant to the same extent as if the nominated person were a secondaryobligor of the obligation owed to the issuer by the applicant;
(2) The beneficiary tothe same extent as if the nominated person were a secondary obligor of theunderlying obligation owed to the beneficiary; and
(3) The applicant to thesame extent as if the nominated person were a secondary obligor of theunderlying obligation owed to the applicant.
(d) Notwithstanding anyagreement or term to the contrary, the rights of subrogation stated insubsections (a) and (b) of this section do not arise until the issuer honorsthe letter of credit or otherwise pays and the rights in subsection (c) of thissection do not arise until the nominated person pays or otherwise gives value.Until then, the issuer, nominated person, and the applicant do not derive underthis section present or prospective rights forming the basis of a claim,defense, or excuse. (1999‑73, s. 1.)
§25‑5‑117. Subrogation of issuer, applicant, and nominated person.
(a) An issuer thathonors a beneficiary's presentation is subrogated to the rights of thebeneficiary to the same extent as if the issuer were a secondary obligor of theunderlying obligation owed to the beneficiary and of the applicant to the sameextent as if the issuer were the secondary obligor of the underlying obligationowed to the applicant.
(b) An applicant thatreimburses an issuer is subrogated to the rights of the issuer against anybeneficiary, presenter, or nominated person to the same extent as if theapplicant were the secondary obligor of the obligations owed to the issuer andhas the rights of subrogation of the issuer to the rights of the beneficiarystated in subsection (a) of this section.
(c) A nominated personwho pays or gives value against a draft or demand presented under a letter ofcredit is subrogated to the rights of:
(1) The issuer againstthe applicant to the same extent as if the nominated person were a secondaryobligor of the obligation owed to the issuer by the applicant;
(2) The beneficiary tothe same extent as if the nominated person were a secondary obligor of theunderlying obligation owed to the beneficiary; and
(3) The applicant to thesame extent as if the nominated person were a secondary obligor of theunderlying obligation owed to the applicant.
(d) Notwithstanding anyagreement or term to the contrary, the rights of subrogation stated insubsections (a) and (b) of this section do not arise until the issuer honorsthe letter of credit or otherwise pays and the rights in subsection (c) of thissection do not arise until the nominated person pays or otherwise gives value.Until then, the issuer, nominated person, and the applicant do not derive underthis section present or prospective rights forming the basis of a claim,defense, or excuse. (1999‑73, s. 1.)
§25‑5‑117. Subrogation of issuer, applicant, and nominated person.
(a) An issuer thathonors a beneficiary's presentation is subrogated to the rights of thebeneficiary to the same extent as if the issuer were a secondary obligor of theunderlying obligation owed to the beneficiary and of the applicant to the sameextent as if the issuer were the secondary obligor of the underlying obligationowed to the applicant.
(b) An applicant thatreimburses an issuer is subrogated to the rights of the issuer against anybeneficiary, presenter, or nominated person to the same extent as if theapplicant were the secondary obligor of the obligations owed to the issuer andhas the rights of subrogation of the issuer to the rights of the beneficiarystated in subsection (a) of this section.
(c) A nominated personwho pays or gives value against a draft or demand presented under a letter ofcredit is subrogated to the rights of:
(1) The issuer againstthe applicant to the same extent as if the nominated person were a secondaryobligor of the obligation owed to the issuer by the applicant;
(2) The beneficiary tothe same extent as if the nominated person were a secondary obligor of theunderlying obligation owed to the beneficiary; and
(3) The applicant to thesame extent as if the nominated person were a secondary obligor of theunderlying obligation owed to the applicant.
(d) Notwithstanding anyagreement or term to the contrary, the rights of subrogation stated insubsections (a) and (b) of this section do not arise until the issuer honorsthe letter of credit or otherwise pays and the rights in subsection (c) of thissection do not arise until the nominated person pays or otherwise gives value.Until then, the issuer, nominated person, and the applicant do not derive underthis section present or prospective rights forming the basis of a claim,defense, or excuse. (1999‑73, s. 1.)
