1(1) 2Except as otherwise provided in s. 8675.109, 9an issuer shall honor a presentation that, as determined by the standard practice referred to in subsection (5), appears on its face strictly to comply with the terms and conditions of the letter of credit. Except as otherwise provided in s. 50675.11351and unless otherwise agreed with the applicant, an issuer shall dishonor a presentation that does not appear so to comply.
71(2) 72An issuer has a reasonable time after presentation, but not beyond the end of the seventh business day of the issuer after the day of its receipt of documents:
101(a) 102To honor;
104(b) 105If the letter of credit provides for honor to be completed more than 7 business days after presentation, to accept a draft or incur a deferred obligation; or
133(c) 134To give notice to the presenter of discrepancies in the presentation.
145(3) 146Except as otherwise provided in subsection (4), an issuer is precluded from asserting as a basis for dishonor any discrepancy if timely notice is not given, or any discrepancy not stated in the notice if timely notice is given.
185(4) 186Failure to give the notice specified in subsection (2) or to mention fraud, forgery, or expiration in the notice does not preclude the issuer from asserting as a basis for dishonor fraud or forgery as described in s. 224675.109(1)225or expiration of the letter of credit before presentation.
234(5) 235An issuer shall observe standard practice of financial institutions that regularly issue letters of credit. Determination of the issuer’s observance of the standard practice is a matter of interpretation for the court. The court shall offer the parties a reasonable opportunity to present evidence of the standard practice.
283(6) 284An issuer is not responsible for:
290(a) 291The performance or nonperformance of the underlying contract, arrangement, or transaction;
302(b) 303An act or omission of others; or
310(c) 311Observance or knowledge of the usage of a particular trade other than the standard practice referred to in subsection (5).
331(7) 332If an undertaking constituting a letter of credit under s. 342675.103(1)(j)343contains nondocumentary conditions, an issuer shall disregard the nondocumentary conditions and treat such conditions as if unstated.
360(8) 361An issuer that has dishonored a presentation shall return the documents or hold them at the disposal of, and send advice to that effect to, the presenter.
388(9) 389An issuer that has honored a presentation as permitted or required by this chapter:
403(a) 404Is entitled to be reimbursed by the applicant in immediately available funds not later than the date of its payment of funds.
426(b) 427Takes the documents free of claims of the beneficiary or presenter.
438(c) 439Is precluded from asserting a right of recourse on a draft under ss. 452673.4141453and 454673.4151455.
456(d) 457Except as otherwise provided in ss. 463675.110464and 465675.117, 466is precluded from restitution of money paid or other value given by mistake to the extent the mistake concerns discrepancies in the documents or tender which are apparent on the face of the presentation.
500(e) 501Is discharged to the extent of its performance under the letter of credit unless the issuer honored a presentation in which a required signature of a beneficiary was forged.
