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The Vermont Statutes Online



Title

09A

:
Uniform Commercial Code






Chapter

005

:
Letters of Credit











 

§

5-110. Warranties

(a) If its

presentation is honored, the beneficiary warrants:

(1) to the

issuer, any other person to whom presentation is made, and the applicant that

there is no fraud or forgery of the kind described in section 5-109(a) of this title;

and

(2) to the

applicant that the drawing does not violate any agreement between the applicant

and beneficiary or any other agreement intended by them to be augmented by the

letter of credit.

(b) The

warranties in subsection (a) of this section are in addition to warranties

arising under Articles 3, 4, 7, and 8 of this title because of the presentation

or transfer of documents covered by any of those articles. (Added 1997, No. 65

(Adj. Sess.), § 1, eff. Jan. 1, 1999.)