(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 Section 7-5-109(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) are in addition to warranties arising under Article 3, 4, 7, and 8 because of the presentation or transfer of documents covered by any of those articles.
Structure Code of Alabama
Article 5 - Letters of Credit.
Section 7-5-101 - Short Title.
Section 7-5-102 - Definitions.
Section 7-5-104 - Formal Requirements.
Section 7-5-105 - Consideration.
Section 7-5-106 - Issuance, Amendment, Cancellation, and Duration.
Section 7-5-107 - Confirmer, Nominated Person, and Adviser.
Section 7-5-108 - Issuer's Rights and Obligations.
Section 7-5-109 - Fraud and Forgery.
Section 7-5-112 - Transfer of Letter of Credit.
Section 7-5-113 - Transfer by Operation of Law.
Section 7-5-114 - Assignment of Proceeds.
Section 7-5-115 - Statute of Limitations.
Section 7-5-116 - Choice of Law and Forum.
Section 7-5-117 - Subrogation of Issuer, Applicant, and Nominated Person.
Section 7-5-118 - Security Interest of Issuer or Nominated Person.