(a) If its presentation is honored, the beneficiary warrants:
(1) to the issuer, any other person to whom presentation is made, and the applicant that there is no fraud or forgery of the kind described in § 4-5-109(a); and
(2) to the applicant that the drawing does not violate any agreement between the applicant and beneficiary or any other agreement intended by them to be augmented by the letter of credit.
(b) The warranties in subsection (a) of this section are in addition to warranties arising under Chapters 3, 4, 7, and 8 because of the presentation or transfer of documents covered by any of those chapters.
Structure Arkansas Code
Title 4 - Business and Commercial Law
Subtitle 1 - Uniform Commercial Code
§ 4-5-104. Formal requirements
§ 4-5-106. Issuance, amendment, cancellation, and duration
§ 4-5-107. Confirmer, nominated person, and adviser
§ 4-5-108. Issuer's rights and obligations
§ 4-5-112. Transfer of letter of credit
§ 4-5-113. Transfer by operation of law
§ 4-5-114. Assignment of proceeds
§ 4-5-115. Statute of limitations
§ 4-5-116. Choice of law and forum
§ 4-5-117. Subrogation of issuer, applicant, and nominated person