Okla. Stat. tit. 12A, § 12A-5-108: Issuer's Rights and Obligations

Issuer's Rights and Obligations.

(a) Except as otherwise provided in Section 5-109 of this

title, an issuer shall honor a presentation that, as determined by

the standard practice referred to in subsection (e) of this section,

appears on its face strictly to comply with the terms and conditions

of the letter of credit. Except as otherwise provided in Section 5-

113 of this title and unless otherwise agreed with the applicant, an

issuer shall dishonor a presentation that does not appear so to

comply.

(b) An issuer has a reasonable time after presentation, but not

beyond the end of the seventh business day of the issuer after the

day of its receipt of documents:

(1) To honor;

(2) If the letter of credit provides for honor to be

completed more than seven (7) business days after

presentation, to accept a draft or incur a deferred

obligation; or

(3) To give notice to the presenter of discrepancies in

the presentation.

(c) Except as otherwise provided in subsection (d) of this

section, an issuer is precluded from asserting as a basis for

dishonor any discrepancy if timely notice is not given, or any

discrepancy not stated in the notice if timely notice is given.

(d) Failure to give the notice specified in subsection (b) of

this section or to mention fraud, forgery, or expiration in the

notice does not preclude the issuer from asserting as a basis for

dishonor fraud or forgery as described in subsection (a) of Section

5-109 of this title or expiration of the letter of credit before

presentation.

(e) An issuer shall observe standard practice of financial

institutions that regularly issue letters of credit. Determination

of the issuer's observance of the standard practice is a matter of

interpretation for the court. The court shall offer the parties a

reasonable opportunity to present evidence of the standard practice.

(f) An issuer is not responsible for:

(1) The performance or nonperformance of the underlying

contract, arrangement, or transaction;

(2) An act or omission of others; or

(3) Observance or knowledge of the usage of a particular

trade other than the standard practice referred to in

subsection (e) of this section.

(g) If an undertaking constituting a letter of credit under

paragraph (10) of subsection (a) of Section 5-102 of this title

contains nondocumentary conditions, an issuer shall disregard the

nondocumentary conditions and treat them as if they were not stated.

(h) An issuer that has dishonored a presentation shall return

the documents or hold them at the disposal of, and send advice to

that effect to, the presenter.

(i) An issuer that has honored a presentation as permitted or

required by this article:

(1) Is entitled to be reimbursed by the applicant in

immediately available funds not later than the date of

its payment of funds;

(2) Takes the documents free of claims of the beneficiary

or presenter;

(3) Is precluded from asserting a right of recourse on a

draft under Sections 3-414 and 3-415 of this title;

(4) Except as otherwise provided in Sections 5-110 and 5-

117 of this title, is precluded from restitution of

money paid or other value given by mistake to the

extent the mistake concerns discrepancies in the

documents or tender which are apparent on the face of

the presentation; and

(5) Is discharged to the extent of its performance under

the letter of credit unless the issuer honored a

presentation in which a required signature of a

beneficiary was forged.