(810 ILCS 5/5-102) (from Ch. 26, par. 5-102)
Sec. 5-102.
Definitions.
(a) In this Article:
(1) "Adviser" means a person who, at the request of |
| the issuer, a confirmer, or another adviser, notifies or requests another adviser to notify the beneficiary that a letter of credit has been issued, confirmed, or amended.
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(2) "Applicant" means a person at whose request or
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| for whose account a letter of credit is issued. The term includes a person who requests an issuer to issue a letter of credit on behalf of another if the person making the request undertakes an obligation to reimburse the issuer.
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(3) "Beneficiary" means a person who under the terms
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| of a letter of credit is entitled to have its complying presentation honored. The term includes a person to whom drawing rights have been transferred under a transferable letter of credit.
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(4) "Confirmer" means a nominated person who
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| undertakes, at the request or with the consent of the issuer, to honor a presentation under a letter of credit issued by another.
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(5) "Dishonor" of a letter of credit means failure
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| timely to honor or to take an interim action, such as acceptance of a draft, that may be required by the letter of credit.
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(6) "Document" means a draft or other demand,
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| document of title, investment security, certificate, invoice, or other record, statement, or representation of fact, law, right, or opinion (i) which is presented in a written or other medium permitted by the letter of credit or, unless prohibited by the letter of credit, by the standard practice referred to in Section 5-108(e) and (ii) which is capable of being examined for compliance with the terms and conditions of the letter of credit. A document may not be oral.
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(7) "Good faith" means honesty in fact in the conduct
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| or transaction concerned.
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(8) "Honor" of a letter of credit means performance
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| of the issuer's undertaking in the letter of credit to pay or deliver an item of value. Unless the letter of credit otherwise provides, "honor" occurs
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(i) upon payment,
(ii) if the letter of credit provides for
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| acceptance, upon acceptance of a draft and, at maturity, its payment, or
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(iii) if the letter of credit provides for
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| incurring a deferred obligation, upon incurring the obligation and, at maturity, its performance.
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(9) "Issuer" means a bank or other person that issues
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| a letter of credit, but does not include an individual who makes an engagement for personal, family, or household purposes.
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(10) "Letter of credit" means a definite undertaking
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| that satisfies the requirements of Section 5-104 by an issuer to a beneficiary at the request or for the account of an applicant or, in the case of a financial institution, to itself or for its own account, to honor a documentary presentation by payment or delivery of an item of value.
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(11) "Nominated person" means a person whom the
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| issuer (i) designates or authorizes to pay, accept, negotiate, or otherwise give value under a letter of credit and (ii) undertakes by agreement or custom and practice to reimburse.
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(12) "Presentation" means delivery of a document to
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| an issuer or nominated person for honor or giving of value under a letter of credit.
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(13) "Presenter" means a person making a presentation
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| as or on behalf of a beneficiary or nominated person.
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(14) "Record" means information that is inscribed on
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| a tangible medium, or that is stored in an electronic or other medium and is retrievable in perceivable form.
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(15) "Successor of a beneficiary" means a person who
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| succeeds to substantially all of the rights of a beneficiary by operation of law, including a corporation with or into which the beneficiary has been merged or consolidated, an administrator, executor, personal representative, trustee in bankruptcy, debtor in possession, liquidator, and receiver.
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(b) Definitions in other Articles applying to this Article and the
Sections in which they appear are:
"Accept" or "Acceptance" Section 3-409
"Value" Sections 3-303, 4-211
(c) Article 1 contains certain additional general definitions and
principles of construction and interpretation applicable throughout this
Article.
(Source: P.A. 89-534, eff. 1-1-97.)
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