Ch. 652

1997 LAWS OF MARYLAND

THE LETTER OF CREDIT. THE TERM DOES NOT INCLUDE A BENEFICIARY'S DRAWING
RIGHTS OR DOCUMENTS PRESENTED BY THE BENEFICIARY.

(B)     A BENEFICIARY MAY ASSIGN ITS RIGHT TO PART OR ALL OF THE
PROCEEDS OF A LETTER OF CREDIT. THE BENEFICIARY MAY DO SO BEFORE
PRESENTATION AS A PRESENT ASSIGNMENT OF ITS RIGHT TO RECEIVE PROCEEDS
CONTINGENT UPON ITS COMPLIANCE WITH THE TERMS AND CONDITIONS OF THE
LETTER OF CREDIT.

(C)     AN ISSUER OR NOMINATED PERSON NEED NOT RECOGNIZE AN
ASSIGNMENT OF PROCEEDS OF A LETTER OF CREDIT UNTIL IT CONSENTS TO THE

ASSIGNMENT.

(D)     AN ISSUER OR NOMINATED PERSON HAS NO OBLIGATION TO GIVE OR
WITHHOLD ITS CONSENT TO AN ASSIGNMENT OF PROCEEDS OF A LETTER OF
CREDIT, BUT CONSENT MAY NOT BE UNREASONABLY WITHHELD IF THE ASSIGNEE
POSSESSES AND EXHIBITS THE LETTER OF CREDIT AND PRESENTATION OF THE
LETTER OF CREDIT IS A CONDITION TO HONOR.

(E)     RIGHTS OF A TRANSFEREE BENEFICIARY OR NOMINATED PERSON ARE
INDEPENDENT OF THE BENEFICIARY'S ASSIGNMENT OF THE PROCEEDS OF A
LETTER OF CREDIT AND ARE SUPERIOR TO THE ASSIGNEE'S RIGHT TO THE
PROCEEDS.

(F)      NEITHER THE RIGHTS RECOGNIZED BY THIS SECTION BETWEEN AN
ASSIGNEE AND AN ISSUER, TRANSFEREE BENEFICIARY, OR NOMINATED PERSON
NOR THE ISSUER'S OR NOMINATED PERSON'S PAYMENT OF PROCEEDS TO AN
ASSIGNEE OR A THIRD PERSON AFFECT THE RIGHTS BETWEEN THE ASSIGNEE AND
ANY PERSON OTHER THAN THE ISSUER, TRANSFEREE BENEFICIARY, OR
NOMINATED PERSON. THE MODE OF CREATING AND PERFECTING A SECURITY
INTEREST IN OR GRANTING AN ASSIGNMENT OF A BENEFICIARY'S RIGHTS TO
PROCEEDS IS GOVERNED BY TITLE 9 OF THIS ARTICLE OR OTHER LAW. AGAINST
PERSONS OTHER THAN THE ISSUER, TRANSFEREE BENEFICIARY, OR NOMINATED
PERSON, THE RIGHTS AND OBLIGATIONS ARISING UPON THE CREATION OF A
SECURITY INTEREST OR OTHER ASSIGNMENT OF A BENEFICIARY'S RIGHT TO
PROCEEDS AND ITS PERFECTION ARE GOVERNED BY TITLE 9 OF THIS ARTICLE OR
OTHER LAW.

5-115. STATUTE OF LIMITATIONS.

AN ACTION TO ENFORCE A RIGHT OR OBLIGATION ARISING UNDER THIS
ARTICLE MUST BE COMMENCED WITHIN 1 YEAR AFTER THE EXPIRATION DATE OF
THE RELEVANT LETTER OF CREDIT OR 1 YEAR AFTER THE CAUSE OF ACTION
ACCRUES, WHICHEVER OCCURS LATER. A CAUSE OF ACTION ACCRUES WHEN THE
BREACH OCCURS, REGARDLESS OF THE AGGRIEVED PARTY'S LACK OF KNOWLEDGE
OF THE BREACH.

5-116. CHOICE OF LAW AND FORUM.

(A) THE LIABILITY OF AN ISSUER, NOMINATED PERSON, OR ADVISER FOR
ACTION OR OMISSION IS GOVERNED BY THE LAW OF THE JURISDICTION CHOSEN BY

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