400.5-118. Security interest in a document. - Missouri Statutes

Security interest in a document.

400.5-118. (a) An issuer or nominated person has a security interestin a document presented under a letter of credit to the extent that theissuer or nominated person honors or gives value for the presentation.

(b) So long as and to the extent that an issuer or nominated personhas not been reimbursed or has not otherwise recovered the value given withrespect to a security interest in a document under subsection (a), thesecurity interest continues and is subject to article 9, but:

(1) a security agreement is not necessary to make the securityinterest enforceable under section 400.9-203(b)(3);

(2) if the document is presented in a medium other than a written orother tangible medium, the security interest is perfected; and

(3) if the document is presented in a written or other tangiblemedium and is not a certificated security, chattel paper, a document oftitle, an instrument, or a letter of credit, the security interest isperfected and has priority over a conflicting security interest in thedocument so long as the debtor does not have possession of the document.

(L. 2001 S.B. 288)

Effective 7-01-01