(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 36-5-109(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 Chapters 3, 4, 7, and 8 because of the presentation or transfer of documents covered by any of those chapters.
HISTORY: 1962 Code Section 10.5-110; 1966 (54) 2716; 2001 Act No. 67.
Structure South Carolina Code of Laws
Chapter 5 - Commercial Code - Letters Of Credit
Section 36-5-101. Short title.
Section 36-5-102. Definitions.
Section 36-5-104. Formal requirements.
Section 36-5-105. Consideration.
Section 36-5-106. Issuance, amendment, cancellation, and duration.
Section 36-5-107. Confirmer, nominated person, and adviser.
Section 36-5-108. Issuer's rights and obligations.
Section 36-5-109. Fraud and forgery.
Section 36-5-112. Transfer of letter of credit.
Section 36-5-113. Transfer by operation of law.
Section 36-5-114. Assignment of proceeds.
Section 36-5-115. Statute of limitations.
Section 36-5-116. Choice of law and forum.
Section 36-5-117. Subrogation of issuer, applicant, and nominated person.
Section 36-5-118. Security interest of issuer or nominated person.