(1)  This chapter applies to letters of credit and to certain rights and obligations arising out of transactions involving letters of credit.

Terms Used In Utah Code 70A-5-103

  • Applicant: means a person at whose request or for whose account a letter of credit is issued. See Utah Code 70A-5-102
  • 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
  • Beneficiary: means a person who under the terms of a letter of credit is entitled to have its complying presentation honored. See Utah Code 70A-5-102
  • Contract: A legal written agreement that becomes binding when signed.
  • 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. See Utah Code 70A-5-102
  • Letter of credit: means a definite undertaking that satisfies the requirements of Section 70A-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. See Utah Code 70A-5-102
  • Nominated person: means a person whom the issuer:
(a) designates or authorizes to pay, accept, negotiate, or otherwise give value under a letter of credit; and
(b) undertakes by agreement or custom and practice to reimburse. See Utah Code 70A-5-102
  • Person: means :Utah Code 68-3-12.5
    • (2)  The statement of a rule in this chapter does not by itself require, imply, or negate application of the same or a different rule to a situation not provided for, or to a person not specified, in this chapter.

    (3)  With the exception of this Subsection (3), Subsections (1) and (4), Subsections 70A-5-102(9) and (10), 70A-5-106(4), and 70A-5-114(4), and except to the extent prohibited in Section 70A-1a-302 and Subsection 70A-5-117(4), the effect of this chapter may be varied by agreement or by a provision stated or incorporated by reference in an undertaking. A term in an agreement or undertaking generally excusing liability or generally limiting remedies for failure to perform obligations is not sufficient to vary obligations prescribed by this chapter.

    (4)  Rights and obligations of an issuer to a beneficiary or a nominated person under a letter of credit are independent of the existence, performance, or nonperformance of a contract or arrangement out of which the letter of credit arises or which underlies it, including contracts or arrangements between the issuer and the applicant and between the applicant and the beneficiary.

    Amended by Chapter 272, 2007 General Session

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