N.Y. Uniform Commercial Code 5-102 – Definitions
Section 5–102. Definitions.
Terms Used In N.Y. Uniform Commercial Code 5-102
- Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Executor: A male person named in a will to carry out the decedent
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Trustee: A person or institution holding and administering property in trust.
(a) In this article:
(1) "Adviser" means a person who, at the request of the issuer, a
confirmer, or another adviser, notifies or requests another
adviser to notify the beneficiary that a letter of credit has
been issued, confirmed, or amended.
(2) "Applicant" means a person at whose request or for whose
account a letter of credit is issued. The term includes a
person who requests an issuer to issue a letter of credit on
behalf of another if the person making the request undertakes
an obligation to reimburse the issuer.
(3) "Beneficiary" means a person who under the terms of a letter
of credit is entitled to have its complying presentation
honored. The term includes a person to whom drawing rights
have been transferred under a transferable letter of credit.
(4) "Confirmer" means a nominated person who undertakes, at the
request or with the consent of the issuer, to honor a
presentation under a letter of credit issued by another.
(5) "Dishonor" of a letter of credit means failure to timely
honor or to take an interim action, such as acceptance of a
draft, that may be required by the letter of credit.
(6) "Document" means a draft or other demand, document of title,
investment security, certificate, invoice, or other record,
statement, or representation of fact, law, right, or opinion:
(i) which is presented in a written or other medium permitted
by the letter of credit or, unless prohibited by the
letter of credit, by the standard practice referred to in
subsection (e) of section 5–108; and
(ii) which is capable of being examined for compliance with
the terms and conditions of the letter of credit. A
document may not be oral.
(7) "Good faith" means honesty in fact in the conduct or
transaction concerned.
(8) "Honor" of a letter of credit means performance of the
issuer's undertaking in the letter of credit to pay or
deliver an item of value. Unless the letter of credit
otherwise provides, "honor" occurs:
(i) upon payment,
(ii) if the letter of credit provides for acceptance, upon
acceptance of a draft and, at maturity, its payment, or
(iii) if the letter of credit provides for incurring a deferred
obligation, upon incurring the obligation and, at
maturity, its performance.
(9) "Issuer" means a bank or other person that issues a letter of
credit, but does not include an individual who makes an
engagement for personal, family, or household purposes.
(10) "Letter of credit" means a definite undertaking that
satisfies the requirements of section 5–104 by an issuer to
a beneficiary at the request or for the account of an
applicant or, in the case of a financial institution, to
itself or for its own account, to honor a documentary
presentation by payment or delivery of an item of value.
(11) "Nominated person" means a person whom the issuer:
(i) designates or authorizes to pay, accept, negotiate, or
otherwise give value under a letter of credit, and
(ii) undertakes by agreement or custom and practice to
reimburse.
(12) "Presentation" means delivery of a document to an issuer or
nominated person for honor or giving of value under a letter
of credit.
(13) "Presenter" means a person making a presentation as or on
behalf of a beneficiary or nominated person.
(14) "Record" means information that is inscribed on a tangible
medium, or that is stored in an electronic or other medium
and is retrievable in perceivable form.
(15) "Successor of a beneficiary" means a person who succeeds to
substantially all of the rights of a beneficiary by operation
of law, including a corporation with or into which the
beneficiary has been merged or consolidated, an
administrator, executor, personal representative, trustee in
bankruptcy, debtor in possession, liquidator, and receiver.
(b) Definitions in other articles applying to this article and the sections in which they appear are:
"Accept" or "acceptance" Section 3–410
"Value" Sections 3–303, 4–209.
(c) Article 1 contains certain additional general definitions and principles of construction and interpretation applicable throughout this article.