N.Y. Uniform Commercial Code 5-110 – Warranties
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Section 5–110. Warranties.
Terms Used In N.Y. Uniform Commercial Code 5-110
- 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
- Forgery: The fraudulent signing or alteration of another's name to an instrument such as a deed, mortgage, or check. The intent of the forgery is to deceive or defraud. Source: OCC
- Fraud: Intentional deception resulting in injury to another.
(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 subsection (a) of section 5–109; 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) of this section are in addition to warranties arising under articles 3, 4, 7 and 8 because of the presentation or transfer of documents covered by any of those articles.