2007 Minnesota Statutes

336.5-118 SECURITY INTEREST OF ISSUER OR NOMINATED PERSON.
(a) An issuer or nominated person has a security interest in a document presented under a
letter of credit to the extent that the issuer or nominated person honors or gives value for the
presentation.
(b) So long as and to the extent that an issuer or nominated person has not been reimbursed
or has not otherwise recovered the value given with respect to a security interest in a document
under subsection (a), the security interest continues and is subject to article 9, but:
(1) a security agreement is not necessary to make the security interest enforceable under
section 336.9-203(b)(3);
(2) if the document is presented in a medium other than a written or other tangible medium,
the security interest is perfected; and
(3) if the document is presented in a written or other tangible medium and is not a certificated
security, chattel paper, a document of title, an instrument, or a letter of credit, the security interest
is perfected and has priority over a conflicting security interest in the document so long as the
debtor does not have possession of the document.
History: 2000 c 399 art 2 s 13