KRS 355.5-110: Warranties.

(1) If its presentation is honored, the beneficiary warrants:

(a) To the issuer, any other person to whom presentation is made, and the

applicant that there is no fraud or forgery of the kind described in KRS 355.5 -

109(1); and

(b) To the applicant that the drawing does not violate any agreement between the

applicant and beneficiary or any other agreement intended by them to be

augmented by the letter of credit.

(2) The warranties in subsection (1) of this section are in addition to warranties arising

under Articles 3, 4, 7, and 8 of this chapter because of the presentation or transfer of

documents covered by any of those articles.