§ 6A-5-109 Fraud and forgery. – (a) If a presentation is made that appears on its face strictly to comply withthe terms and conditions of the letter of credit, but a required document isforged or materially fraudulent, or honor of the presentation would facilitatea material fraud by the beneficiary on the issuer or applicant:
(1) the issuer shall honor the presentation, if honor isdemanded by (i) a nominated person who has given value in good faith andwithout notice of forgery or material fraud, (ii) a confirmer who has honoredits confirmation in good faith, (iii) a holder in due course of a draft drawnunder the letter of credit which was taken after acceptance by the issuer ornominated person, or (iv) an assignee of the issuer's or nominated person'sdeferred obligation that was taken for value and without notice of forgery ormaterial fraud after the obligation was incurred by the issuer or nominatedperson; and
(2) the issuer, acting in good faith, may honor or dishonorthe presentation in any other case.
(b) If an applicant claims that a required document is forgedor materially fraudulent or that honor of the presentation would facilitate amaterial fraud by the beneficiary on the issuer or applicant, a court ofcompetent jurisdiction may temporarily or permanently enjoin the issuer fromhonoring a presentation or grant similar relief against the issuer or otherpersons only if the court finds that:
(1) the relief is not prohibited under the law applicable toan accepted draft or deferred obligation incurred by the issuer;
(2) a beneficiary, issuer, or nominated person who may beadversely affected is adequately protected against loss that it may sufferbecause the relief is granted;
(3) all of the conditions to entitle a person to the reliefunder the law of this State have been met; and
(4) on the basis of the information submitted to the court,the applicant is more likely than not to succeed under its claim of forgery ormaterial fraud and the person demanding honor does not qualify for protectionunder subsection (a)(1).
§ 6A-5-109 Fraud and forgery. – (a) If a presentation is made that appears on its face strictly to comply withthe terms and conditions of the letter of credit, but a required document isforged or materially fraudulent, or honor of the presentation would facilitatea material fraud by the beneficiary on the issuer or applicant:
(1) the issuer shall honor the presentation, if honor isdemanded by (i) a nominated person who has given value in good faith andwithout notice of forgery or material fraud, (ii) a confirmer who has honoredits confirmation in good faith, (iii) a holder in due course of a draft drawnunder the letter of credit which was taken after acceptance by the issuer ornominated person, or (iv) an assignee of the issuer's or nominated person'sdeferred obligation that was taken for value and without notice of forgery ormaterial fraud after the obligation was incurred by the issuer or nominatedperson; and
(2) the issuer, acting in good faith, may honor or dishonorthe presentation in any other case.
(b) If an applicant claims that a required document is forgedor materially fraudulent or that honor of the presentation would facilitate amaterial fraud by the beneficiary on the issuer or applicant, a court ofcompetent jurisdiction may temporarily or permanently enjoin the issuer fromhonoring a presentation or grant similar relief against the issuer or otherpersons only if the court finds that:
(1) the relief is not prohibited under the law applicable toan accepted draft or deferred obligation incurred by the issuer;
(2) a beneficiary, issuer, or nominated person who may beadversely affected is adequately protected against loss that it may sufferbecause the relief is granted;
(3) all of the conditions to entitle a person to the reliefunder the law of this State have been met; and
(4) on the basis of the information submitted to the court,the applicant is more likely than not to succeed under its claim of forgery ormaterial fraud and the person demanding honor does not qualify for protectionunder subsection (a)(1).
§ 6A-5-109 Fraud and forgery. – (a) If a presentation is made that appears on its face strictly to comply withthe terms and conditions of the letter of credit, but a required document isforged or materially fraudulent, or honor of the presentation would facilitatea material fraud by the beneficiary on the issuer or applicant:
(1) the issuer shall honor the presentation, if honor isdemanded by (i) a nominated person who has given value in good faith andwithout notice of forgery or material fraud, (ii) a confirmer who has honoredits confirmation in good faith, (iii) a holder in due course of a draft drawnunder the letter of credit which was taken after acceptance by the issuer ornominated person, or (iv) an assignee of the issuer's or nominated person'sdeferred obligation that was taken for value and without notice of forgery ormaterial fraud after the obligation was incurred by the issuer or nominatedperson; and
(2) the issuer, acting in good faith, may honor or dishonorthe presentation in any other case.
(b) If an applicant claims that a required document is forgedor materially fraudulent or that honor of the presentation would facilitate amaterial fraud by the beneficiary on the issuer or applicant, a court ofcompetent jurisdiction may temporarily or permanently enjoin the issuer fromhonoring a presentation or grant similar relief against the issuer or otherpersons only if the court finds that:
(1) the relief is not prohibited under the law applicable toan accepted draft or deferred obligation incurred by the issuer;
(2) a beneficiary, issuer, or nominated person who may beadversely affected is adequately protected against loss that it may sufferbecause the relief is granted;
(3) all of the conditions to entitle a person to the reliefunder the law of this State have been met; and
(4) on the basis of the information submitted to the court,the applicant is more likely than not to succeed under its claim of forgery ormaterial fraud and the person demanding honor does not qualify for protectionunder subsection (a)(1).
