A set of recent New York state court decisions addressed fraud defenses raised by the applicant and issuer against 11 LC beneficiaries. In his commentary on the cases, James G. Barnes examines the court’s application of specific sections of New York’s adoption of Uniform Commercial Code (NYUCC) Article 5 (Letters of Credit) including those pertaining to issuer’s rights and obligations (5-108), fraud (5-109), and remedies (5-111). The commentary is partially in response to the court’s decision to incorporate its summary disposition of applicant and issuer claims against all 11 beneficiaries to that of its separate summary disposition of wrongful dishonor claims brought by certain beneficiaries against the issuer. Following Barnes’ commentary are summaries of two of the court decisions.
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