§5-118. Security interest of issuer or nominated person
(a) An issuer or nominated person has a security interest in a document presented under a letter of credit and any identifiable proceeds of the collateral to the extent that the issuer or nominated person honors or gives value for the presentation.
(b) Subject to subsection (c), as long as and to the extent that an issuer or nominated person has not been reimbursed or has not otherwise recovered the value given with respect to a security interest under subsection (a), the security interest continues and is subject to Chapter 9, but:
(1) a security agreement is not necessary to make the security interest enforceable under R.S. 10:9-203(b)(3); and
(2) the security interest is perfected and has priority over conflicting security interests in the collateral or its proceeds.
(c) A security interest that arises under this section is subject to the rights of a subsequent purchaser under R.S. 10:9-330 or 9-331 or a transferee under R.S. 10:9-332.
Acts 2001, No. 128, §7, eff. July 1, 2001.
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