§ 25-5-103. Scope. - North Carolina Statutes

Article 5.

Letters of Credit.

(Revised)

§ 25‑5‑103. Scope.

(a)        This Articleapplies to letters of credit and to certain rights and obligations arising outof transactions involving letters of credit.

(b)        The statement of arule in this Article does not by itself require, imply, or negate applicationof the same or a different rule to a situation not provided for, or to a personnot specified, in this Article.

(c)        With the exceptionof this subsection, subsections (a) and (d) of this section, G.S. 25‑5‑102(a)(9)and (10), 25‑5‑106(d), and 25‑5‑114(d), and except tothe extent prohibited in G.S. 25‑1‑302 and G.S. 25‑5‑117(d),the effect of this Article may be varied by agreement or by a provision statedor incorporated by reference in an undertaking. A term in an agreement orundertaking generally excusing liability or generally limiting remedies forfailure to perform obligations is not sufficient to vary obligations prescribedby this Article.

(d)        Rights andobligations of an issuer to a beneficiary or a nominated person under a letterof credit are independent of the existence, performance, or nonperformance of acontract or arrangement out of which the letter of credit arises or whichunderlies it, including contracts or arrangements between the issuer and theapplicant and between the applicant and the beneficiary. (1999‑73, s. 1; 2006‑112,s. 19.)