KRS 355.5-102: Definitions.

(1) In this article:

(a) "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.

(b) "Applicant" means a person at wh ose 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.

(c) "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.

(d) "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.

(e) "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.

(f) "Document" means a draft or other demand, document of title, investment

security, certificate, invoice, or other record, statement, or representation of

fact, law, right, or opinion:

1. Which is presented in a written or other medium permitted by the letter

of credit or, unless prohibited by the letter of credit, by the standard

practice referred to in KRS 355.5-108(5); and

2. Which is capable of being examined for compliance with the t erms and

conditions of the letter of credit. A document may not be oral.

(g) "Good faith" means honesty in fact in the conduct or transaction concerned.

(h) "Honor" of a letter of credit means performance of the issuer's undertaking in

the letter of credit to pay or deliver an item of value. Unless the letter of credit

otherwise provides, "honor" occurs:

1. Upon payment;

2. If the letter of credit provides for acceptance, upon acceptance of a draft

and, at maturity, its payment; or

3. If the letter of credit provides for incurring a deferred obligation, upon

incurring the obligation and, at maturity, its performance.

(i) "Issuer" means a bank or other person that issues a letter of credit, but does

not include an individual who makes an engagement for personal, family, or

household purposes.

(j) "Letter of credit" means a definite undertaking that satisfies the requirements

of KRS 355.5 -104 by an issuer to a beneficiary at the request or for the

account of an applicant or, in the case of a financial institution, to itself or for

its own account, to honor a documentary presentation by payment or delivery

of an item of value.

(k) "Nominated person" means a person whom the issuer:

1. Designates or authorizes to pay, accept, negotiate, or oth erwise give

value under a letter of credit; and

2. Undertakes by agreement or custom and practice to reimburse.

(l) "Presentation" means delivery of a document to an issuer or nominated person

for honor or giving of value under a letter of credit.

(m) "Presenter" means a person making a presentation as or on behalf of a

beneficiary or nominated person.

(n) "Record" means information that is inscribed on a tangible medium, or that is

stored in an electronic or other medium and is retrievable in perceivable form.

(o) "Successor of a beneficiary" means a person who succeeds to substantially all

of the rights of a beneficiary by operation of law, including a corporation with

or into which the beneficiary has been merged or consolidated, an

administrator, executor, personal representative, trustee in bankruptcy, debtor

in possession, liquidator, and receiver.

(2) Definitions in other articles in this chapter applying to this article and the sections in

which they appear are:

"Accept" or "Acceptance" KRS 355.3-409;

"Value" KRS 355.3-303 and 355.4-211.

(3) Article 1 of this chapter contains certain additional general definitions and

principles of construction and interpretation applicable throughout this article.