N.Y. Uniform Commercial Code Law § 5-111: Remedies

Section 5--111. Remedies.

(a) If an issuer wrongfully dishonors or repudiates its obligation to

pay money under a letter of credit before presentation, the beneficiary,

successor, or nominated person presenting on its own behalf may recover

from the issuer the amount that is the subject of the dishonor or

repudiation. If the issuer's obligation under the letter of credit is

not for the payment of money, the claimant may obtain specific

performance or, at the claimant's election, recover an amount equal to

the value of performance from the issuer. In either case, the claimant

may also recover incidental but not consequential damages. The claimant

is not obligated to take action to avoid damages that might be due from

the issuer under this subsection. If, although not obligated to do so,

the claimant avoids damages, the claimant's recovery from the issuer

must be reduced by the amount of damages avoided. The issuer has the

burden of proving the amount of damages avoided. In the case of

repudiation the claimant need not present any document.

(b) If an issuer wrongfully dishonors a draft or demand presented

under a letter of credit or honors a draft or demand in breach of its

obligation to the applicant, the applicant may recover damages resulting

from the breach, including incidental but not consequential damages,

less any amount saved as a result of the breach.

(c) If an adviser or nominated person other than a confirmer breaches

an obligation under this article or an issuer breaches an obligation not

covered in subsection (a) or (b) of this section, a person to whom the

obligation is owed may recover damages resulting from the breach,

including incidental but not consequential damages, less any amount

saved as a result of the breach. To the extent of the confirmation, a

confirmer has the liability of an issuer specified in this subsection

and subsections (a) and (b) of this section.

(d) An issuer, nominated person, or adviser who is found liable under

subsection (a), (b) or (c) of this section shall pay interest on the

amount owed thereunder from the date of wrongful dishonor or other

appropriate date.

(e) Damages that would otherwise be payable by a party for breach of

an obligation under this article may be liquidated by agreement or

undertaking, but only in an amount or by a formula that is reasonable in

light of the harm anticipated.