Sec. 5106.
(1) A letter of credit is issued and becomes enforceable according to its terms against the issuer when the issuer sends or otherwise transmits it to the person requested to advise or to the beneficiary. A letter of credit is revocable only if it so provides.
(2) After a letter of credit is issued, rights and obligations of a beneficiary, applicant, confirmer, and issuer are not affected by an amendment or cancellation to which that person has not consented except to the extent the letter of credit provides that it is revocable or that the issuer may amend or cancel the letter of credit without that consent.
(3) If there is no stated expiration date or other provision that determines its duration, a letter of credit expires 1 year after its stated date of issuance or, if none is stated, after the date on which it is issued.
(4) A letter of credit that states that it is perpetual expires 5 years after its stated date of issuance, or if none is stated, after the date on which it is issued.
History: 1962, Act 174, Eff. Jan. 1, 1964 ;-- Am. 1998, Act 488, Imd. Eff. Jan. 4, 1999
Structure Michigan Compiled Laws
Chapter 440 - Uniform Commercial Code
Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102)
Article 5 - Letters of Credit (440.5101...440.5118)
Section 440.5101 - Uniform Commercial Code—letters of Credit; Short Title of Article.
Section 440.5102 - Definitions.
Section 440.5103 - Letters of Credit; Scope of Article.
Section 440.5104 - Issuance; Authentication.
Section 440.5105 - Consideration.
Section 440.5106 - Credit; Issuance; Enforcement; Revocation; Expiration.
Section 440.5108 - Honoring or Dishonoring Presentation.
Section 440.5109 - Forged or Fraudulent Document; Injunction; Findings of Court.
Section 440.5110 - Warranties on Presentment or Transfer.
Section 440.5112 - Right to Draw or Demand Performance Under Letter of Credit; Transfer.
Section 440.5113 - Rights of Successor Beneficiary.
Section 440.5114 - Proceeds of Letter of Credit.
Section 440.5115 - Commencement of Action.
Section 440.5116 - Jurisdiction; Forum.