New York Laws
Article 5 - Letters of Credit
5-111 - Remedies.

(a) If an issuer wrongfully dishonors or repudiates its obligation to
pay money under a letter of credit before presentation, the beneficiary,
successor, or nominated person presenting on its own behalf may recover
from the issuer the amount that is the subject of the dishonor or
repudiation. If the issuer's obligation under the letter of credit is
not for the payment of money, the claimant may obtain specific
performance or, at the claimant's election, recover an amount equal to
the value of performance from the issuer. In either case, the claimant
may also recover incidental but not consequential damages. The claimant
is not obligated to take action to avoid damages that might be due from
the issuer under this subsection. If, although not obligated to do so,
the claimant avoids damages, the claimant's recovery from the issuer
must be reduced by the amount of damages avoided. The issuer has the
burden of proving the amount of damages avoided. In the case of
repudiation the claimant need not present any document.
(b) If an issuer wrongfully dishonors a draft or demand presented
under a letter of credit or honors a draft or demand in breach of its
obligation to the applicant, the applicant may recover damages resulting
from the breach, including incidental but not consequential damages,
less any amount saved as a result of the breach.
(c) If an adviser or nominated person other than a confirmer breaches
an obligation under this article or an issuer breaches an obligation not
covered in subsection (a) or (b) of this section, a person to whom the
obligation is owed may recover damages resulting from the breach,
including incidental but not consequential damages, less any amount
saved as a result of the breach. To the extent of the confirmation, a
confirmer has the liability of an issuer specified in this subsection
and subsections (a) and (b) of this section.
(d) An issuer, nominated person, or adviser who is found liable under
subsection (a), (b) or (c) of this section shall pay interest on the
amount owed thereunder from the date of wrongful dishonor or other
appropriate date.
(e) Damages that would otherwise be payable by a party for breach of
an obligation under this article may be liquidated by agreement or
undertaking, but only in an amount or by a formula that is reasonable in
light of the harm anticipated.