57A-5-110. Warranties.
(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 §57A-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 57A-3, 57A-4, 57A-7, and 57A-8 because of the presentation or transfer of documents covered by any of those chapters.
Source: SL 1998, ch 283, §1.
Structure South Dakota Codified Laws
Title 57A - Uniform Commercial Code
Chapter 05 - Letters Of Credit
Section 57A-5-101 - Short title.
Section 57A-5-102 - Definitions.
Section 57A-5-104 - Formal requirements.
Section 57A-5-105 - Consideration.
Section 57A-5-106 - Issuance, amendment, cancellation, and duration.
Section 57A-5-107 - Confirmer, nominated person, and adviser.
Section 57A-5-108 - Issuer's rights and obligations.
Section 57A-5-110 - Warranties.
Section 57A-5-112 - Transfer of letter of credit.
Section 57A-5-113 - Transfer by operation of law.
Section 57A-5-114 - Assignment of proceeds.
Section 57A-5-115 - Statute of limitations.
Section 57A-5-116 - Choice of law and forum.
Section 57A-5-117 - Subrogation of issuer, applicant, and nominated person.
Section 57A-5-118 - Issuer's security interest in document presented under letter of credit.