§ 25-5-110. Warranties. - North Carolina Statutes

§25‑5‑110.  Warranties.

(a)        If its presentationis honored, the beneficiary warrants:

(1)        To the issuer, anyother person to whom presentation is made, and the applicant that there is nofraud or forgery of the kind described in G.S. 25‑5‑109(a); and

(2)        To the applicantthat the drawing does not violate any agreement between the applicant andbeneficiary or any other agreement intended by them to be augmented by theletter of credit.

(b)        The warranties insubsection (a) of this section are in addition to warranties arising underArticles 3, 4, 7, and 8 of this Chapter because of the presentation or transferof documents covered by any of those Articles. (1999‑73, s. 1.)