Consideration is not required to issue, amend, transfer or cancel a letter of credit, advice or confirmation.
History: 1978 Comp., § 55-5-105, enacted by Laws 1997, ch. 75, § 7.
OFFICIAL COMMENTS
UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.
It is not to be expected that any issuer will issue its letter of credit without some form of remuneration. But it is not expected that the beneficiary will know what the issuer's remuneration was or whether in fact there was any identifiable remuneration in a given case. And it might be difficult for the beneficiary to prove the issuer's remuneration. This section dispenses with this proof and is consistent with the position of Lord Mansfield in Pillans v. Van Mierop, 97 Eng.Rep. 1035 (K.B. 1765) in making consideration irrelevant.
Repeals and reenactments. — Laws 1997, ch. 75, § 7 repealed former 55-5-105 NMSA 1978, as enacted by Laws 1961, ch. 96, § 5-105, and enacted a new section, effective July 1, 1997. For provisions of former section, see the 1996 NMSA 1978 on NMOneSource.com.
Am. Jur. 2d, A.L.R. and C.J.S. references. — 50 Am. Jur. 2d Letters of Credit and Credit Cards § 16.
Structure New Mexico Statutes
Chapter 55 - Uniform Commercial Code
Section 55-5-101 - Short title.
Section 55-5-102 - Definitions.
Section 55-5-104 - Formal requirements.
Section 55-5-105 - Consideration.
Section 55-5-106 - Issuance, amendment, cancellation and duration.
Section 55-5-107 - Confirmer, nominated person and adviser.
Section 55-5-108 - Issuer's rights and obligations.
Section 55-5-109 - Fraud and forgery.
Section 55-5-110 - Warranties.
Section 55-5-112 - Transfer of letter of credit.
Section 55-5-113 - Transfer by operation of law.
Section 55-5-114 - Assignment of proceeds.
Section 55-5-115 - Statute of limitations.
Section 55-5-116 - Choice of law and forum.
Section 55-5-117 - Subrogation of issuer, applicant and nominated person.
Section 55-5-118 - Security interest of issuer or nominated person.