State Codes and Statutes
Statutes > Utah > Title-70a > Chapter-05 > 70a-5-10270A-5-102. Definitions.
As used in this chapter:
(1) "Adviser" means a person who, at the request of the issuer, a confirmer, or anotheradviser, notifies or requests another adviser to notify the beneficiary that a letter of credit has beenissued, confirmed, or amended.
(2) "Applicant" means a person at whose request or for whose account a letter of credit isissued. The term includes a person who requests an issuer to issue a letter of credit on behalf ofanother if the person making the request undertakes an obligation to reimburse the issuer.
(3) "Beneficiary" means a person who under the terms of a letter of credit is entitled tohave its complying presentation honored. The term includes a person to whom drawing rightshave been transferred under a transferable letter of credit.
(4) "Confirmer" means a nominated person who undertakes, at the request or with theconsent of the issuer, to honor a presentation under a letter of credit issued by another.
(5) "Dishonor" of a letter of credit means failure timely to honor or to take an interimaction, such as acceptance of a draft, that may be required by the letter of credit.
(6) "Document" means a draft or other demand, document of title, investment security,certificate, invoice, or other record, statement, or representation of fact, law, right, or opinion:
(a) which is presented in a written or other medium permitted by the letter of credit or,unless prohibited by the letter of credit, by the standard practice referred to in Subsection70A-5-108(5); and
(b) which is capable of being examined for compliance with the terms and conditions ofthe letter of credit. A document may not be oral.
(7) "Good faith" means honesty in fact in the conduct or transaction concerned.
(8) "Honor" of a letter of credit means performance of the issuer's undertaking in theletter of credit to pay or deliver an item of value. Unless the letter of credit otherwise provides,"honor" occurs:
(a) upon payment;
(b) if the letter of credit provides for acceptance, upon acceptance of a draft and, atmaturity, its payment; or
(c) if the letter of credit provides for incurring a deferred obligation, upon incurring theobligation and, at maturity, its performance.
(9) "Issuer" means a bank or other person that issues a letter of credit, but does notinclude an individual who makes an engagement for personal, family, or household purposes.
(10) "Letter of credit" means a definite undertaking that satisfies the requirements ofSection 70A-5-104 by an issuer to a beneficiary at the request or for the account of an applicantor, in the case of a financial institution, to itself or for its own account, to honor a documentarypresentation by payment or delivery of an item of value.
(11) "Nominated person" means a person whom the issuer:
(a) designates or authorizes to pay, accept, negotiate, or otherwise give value under aletter of credit; and
(b) undertakes by agreement or custom and practice to reimburse.
(12) "Presentation" means delivery of a document to an issuer or nominated person forhonor or giving of value under a letter of credit.
(13) "Presenter" means a person making a presentation as or on behalf of a beneficiary ornominated person.
(14) "Record" means information that is inscribed on a tangible medium, or that is storedin an electronic or other medium and is retrievable in perceivable form.
(15) "Successor of a beneficiary" means a person who succeeds to substantially all of therights of a beneficiary by operation of law, including a corporation with or into which thebeneficiary has been merged or consolidated, an administrator, executor, personal representative,trustee in bankruptcy, debtor in possession, liquidator, and receiver.
Repealed and Re-enacted by Chapter 241, 1997 General Session
