Sec. 5110.
(1) If presentation is honored, the beneficiary warrants:
(a) 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 5109(1).
(b) 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.
(2) The warranties in subsection (1) are in addition to warranties arising under articles 3, 4, 7, and 8 because of the presentation or transfer of documents covered by any of those articles.
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.