PARRIS N. GLENDENING, Governor

Ch. 652

Section 5-101 through 5-117 and 9-104(m)

Annotated Code of Maryland

(1992 Replacement Volume and 1996 Supplement)

BY repealing and reenacting, with amendments,
Article - Commercial Law

Section 1-105(2), 2-512, 9-103(1)(a), 9-104(1), 9-105(3), 9-106, 9-304(1), and
9-305

Annotated Code of Maryland

(1992 Replacement Volume and 1996 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That Section(s) 5-101 through 5-117 of Article - Commercial Law of the
Annotated Code of Maryland be repealed.

SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland
read as follows:

Article - Commercial Law

5-101. SHORT TITLE.

THIS TITLE MAY BE CITED AS THE MARYLAND UNIFORM COMMERCIAL CODE -
LETTERS OF CREDIT.

5-102. DEFINITIONS.

(A) IN THIS TITLE:

(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.

(2)     "APPLICANT" MEANS A PERSON AT WHOSE REQUEST OR 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.

(3)     "BENEFICIARY" MEANS A PERSON WHO UNDER THE TERMS 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.

(4)     "CONFIRMER" MEANS A NOMINATED PERSON WHO UNDERTAKES,
AT THE REQUEST OR WITH THE CONSENT OF THE ISSUER, TO HONOR A
PRESENTATION UNDER A LETTER OF CREDIT ISSUED BY ANOTHER.

(5)     "DISHONOR" OF A LETTER OF CREDIT MEANS FAILURE 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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