8.5A-117.1 - A-117.1. Security interest of issuer or nominated person. - Virginia Statutes

§ 8.5A-117.1. Security interest of issuer or nominated person.

(a) An issuer or nominated person has a security interest in a documentpresented under a letter of credit to the extent that the issuer or nominatedperson honors or gives value for the presentation.

(b) So long as and to the extent that an issuer or nominated person has notbeen reimbursed or has not otherwise recovered the value given with respectto a security interest in a document under subsection (a), the securityinterest continues and is subject to Title 8.9A, but:

(1) a security agreement is not necessary to make the security interestenforceable under subdivision (b) (3) of § 8.9A-203;

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

(3) if the document is presented in a written or other tangible medium and isnot a certificated security, chattel paper, a document of title, aninstrument, or a letter of credit, the security interest is perfected and haspriority over a conflicting security interest in the document so long as thedebtor does not have possession of the document.

(2000, c. 1007.)