Okla. Stat. tit. 12A, § 12A-5-117: Subrogation of Issuer, Applicant, and Nominated Person

Subrogation of Issuer, Applicant, and Nominated Person.

(a) An issuer that honors a beneficiary's presentation is

subrogated to the rights of the beneficiary to the same extent as if

the issuer were a secondary obligor of the underlying obligation

owed to the beneficiary and of the applicant to the same extent as

if the issuer were the secondary obligor of the underlying

obligation owed to the applicant.

(b) An applicant that reimburses an issuer is subrogated to the

rights of the issuer against any beneficiary, presenter, or

nominated person to the same extent as if the applicant were the

secondary obligor of the obligations owed to the issuer and has the

rights of subrogation of the issuer to the rights of the beneficiary

stated in subsection (a) of this section.

(c) A nominated person who pays or gives value against a draft

or demand presented under a letter of credit is subrogated to the

rights of:

(1) The issuer against the applicant to the same extent as

if the nominated person were a secondary obligor of

the obligation owed to the issuer by the applicant;

(2) The beneficiary to the same extent as if the nominated

person were a secondary obligor of the underlying

obligation owed to the beneficiary; and

(3) The applicant to the same extent as if the nominated

person were a secondary obligor of the underlying

obligation owed to the applicant.

(d) Notwithstanding any agreement or term to the contrary, the

rights of subrogation stated in subsections (a) and (b) of this

section do not arise until the issuer honors the letter of credit or

otherwise pays and the rights in subsection (c) of this section do

not arise until the nominated person pays or otherwise gives value.

Until then, the issuer, nominated person, and the applicant do not

derive under this section present or prospective rights forming the

basis of a claim, defense, or excuse.