Texas Business & Commerce Code
§ 5.110 — WARRANTIES
BC § 5.110Title 1. UNIFORM COMMERCIAL CODE · Ch. 5. LETTERS OF CREDIT
Statute text
View on source(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); 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) are in addition to warranties arising under Chapters 3, 4, 7, and 8 because of the presentation or transfer of documents covered by any of those chapters.
(c)Notwithstanding any agreement or term to the contrary, the warranties in Subsection (a) do not arise until the issuer honors the letter of credit.
Legislative history
Amended by Acts 1999, 76th Leg., ch. 4, Sec. 1, eff. Sept. 1, 1999.