§ 6A-5-117 Subrogation of issuer,applicant, and nominated person. – (a) An issuer that honors a beneficiary's presentation is subrogated to therights of the beneficiary to the same extent as if the issuer were a secondaryobligor of the underlying obligation owed to the beneficiary and of theapplicant to the same extent as if the issuer were the secondary obligor of theunderlying obligation owed to the applicant.
(b) An applicant that reimburses an issuer is subrogated tothe rights of the issuer against any beneficiary, presenter, or nominatedperson to the same extent as if the applicant were the secondary obligor of theobligations owed to the issuer and has the rights of subrogation of the issuerto the rights of the beneficiary stated in subsection (a).
(c) A nominated person who pays or gives value against adraft or demand presented under a letter of credit is subrogated to the rightsof:
(1) The issuer against the applicant to the same extent as ifthe nominated person were a secondary obligor of the obligation owed to theissuer by the applicant;
(2) The beneficiary to the same extent as if the nominatedperson were a secondary obligor of the underlying obligation owed to thebeneficiary; and
(3) The applicant to the same extent as if the nominatedperson were a secondary obligor of the underlying obligation owed to theapplicant.
(d) Notwithstanding any agreement or term to the contrary,the rights of subrogation stated in subsections (a) and (b) do not arise untilthe issuer honors the letter of credit or otherwise pays, and the rights insubsection (c) do not arise until the nominated person pays or otherwise givesvalue. Until then, the issuer, nominated person, and the applicant do notderive under this section present or prospective rights forming the basis of aclaim, defense, or excuse.
§ 6A-5-117 Subrogation of issuer,applicant, and nominated person. – (a) An issuer that honors a beneficiary's presentation is subrogated to therights of the beneficiary to the same extent as if the issuer were a secondaryobligor of the underlying obligation owed to the beneficiary and of theapplicant to the same extent as if the issuer were the secondary obligor of theunderlying obligation owed to the applicant.
(b) An applicant that reimburses an issuer is subrogated tothe rights of the issuer against any beneficiary, presenter, or nominatedperson to the same extent as if the applicant were the secondary obligor of theobligations owed to the issuer and has the rights of subrogation of the issuerto the rights of the beneficiary stated in subsection (a).
(c) A nominated person who pays or gives value against adraft or demand presented under a letter of credit is subrogated to the rightsof:
(1) The issuer against the applicant to the same extent as ifthe nominated person were a secondary obligor of the obligation owed to theissuer by the applicant;
(2) The beneficiary to the same extent as if the nominatedperson were a secondary obligor of the underlying obligation owed to thebeneficiary; and
(3) The applicant to the same extent as if the nominatedperson were a secondary obligor of the underlying obligation owed to theapplicant.
(d) Notwithstanding any agreement or term to the contrary,the rights of subrogation stated in subsections (a) and (b) do not arise untilthe issuer honors the letter of credit or otherwise pays, and the rights insubsection (c) do not arise until the nominated person pays or otherwise givesvalue. Until then, the issuer, nominated person, and the applicant do notderive under this section present or prospective rights forming the basis of aclaim, defense, or excuse.
§ 6A-5-117 Subrogation of issuer,applicant, and nominated person. – (a) An issuer that honors a beneficiary's presentation is subrogated to therights of the beneficiary to the same extent as if the issuer were a secondaryobligor of the underlying obligation owed to the beneficiary and of theapplicant to the same extent as if the issuer were the secondary obligor of theunderlying obligation owed to the applicant.
(b) An applicant that reimburses an issuer is subrogated tothe rights of the issuer against any beneficiary, presenter, or nominatedperson to the same extent as if the applicant were the secondary obligor of theobligations owed to the issuer and has the rights of subrogation of the issuerto the rights of the beneficiary stated in subsection (a).
(c) A nominated person who pays or gives value against adraft or demand presented under a letter of credit is subrogated to the rightsof:
(1) The issuer against the applicant to the same extent as ifthe nominated person were a secondary obligor of the obligation owed to theissuer by the applicant;
(2) The beneficiary to the same extent as if the nominatedperson were a secondary obligor of the underlying obligation owed to thebeneficiary; and
(3) The applicant to the same extent as if the nominatedperson were a secondary obligor of the underlying obligation owed to theapplicant.
(d) Notwithstanding any agreement or term to the contrary,the rights of subrogation stated in subsections (a) and (b) do not arise untilthe issuer honors the letter of credit or otherwise pays, and the rights insubsection (c) do not arise until the nominated person pays or otherwise givesvalue. Until then, the issuer, nominated person, and the applicant do notderive under this section present or prospective rights forming the basis of aclaim, defense, or excuse.
