§ 6A-5-118 - Security interest of issuer or nominated person. - Rhode Island Statutes

SECTION 6A-5-118

   § 6A-5-118  Security interest of issuer ornominated person. – (a) An issuer or nominated person has a security interest in a documentpresented under a letter of credit and any identifiable proceeds of thecollateral to the extent that the issuer or nominated person honors or givesvalue for the presentation.

   (b) Subject to subsection (c), as long as and to the extentthat an issuer or nominated person has not been reimbursed or has not otherwiserecovered the value given with respect to a security interest in a documentunder subsection (a), the security interest continues and is subject to chapter9 of this title, but:

   (1) A security agreement is not necessary to make thesecurity interest enforceable under § 6A-9-203(b)(3);

   (2) If the document is presented in a medium other than awritten or other tangible medium, the security interest is perfected; and

   (3) If the document is presented in a written or othertangible medium and is not a certificated security, chattel paper, a documentof title, an instrument, or a letter of credit, so long as the debtor does nothave possession of the document, the security interest is perfected and haspriority over a conflicting security interest in the document.