{"data":{"id":"us-ky/krs-355.5-102","jurisdiction":"us-ky","citation":"KRS 355.5-102","heading":"Definitions.","body":"(1) In this article:\n(a) \"Adviser\" means a person who, at the request of the issuer, a confirmer, or\nanother adviser, notifies or requests another adviser to notify the beneficiary\nthat a letter of credit has been issued, confirmed, or amended.\n(b) \"Applicant\" means a person at wh ose request or for whose account a letter of\ncredit is issued. The term includes a person who requests an issuer to issue a\nletter of credit on behalf of another if the person making the request\nundertakes an obligation to reimburse the issuer.\n(c) \"Beneficiary\" means a person who under the terms of a letter of credit is\nentitled to have its complying presentation honored. The term includes a\nperson to whom drawing rights have been transferred under a transferable\nletter of credit.\n(d) \"Confirmer\" means a nominated person who undertakes, at the request or with\nthe consent of the issuer, to honor a presentation under a letter of credit issued\nby another.\n(e) \"Dishonor\" of a letter of credit means failure timely to honor or to take an\ninterim action, such as acceptance of a draft, that may be required by the letter\nof credit.\n(f) \"Document\" means a draft or other demand, document of title, investment\nsecurity, certificate, invoice, or other record, statement, or representation of\nfact, law, right, or opinion:\n1. Which is presented in a written or other medium permitted by the letter\nof credit or, unless prohibited by the letter of credit, by the standard\npractice referred to in KRS 355.5-108(5); and\n2. Which is capable of being examined for compliance with the t erms and\nconditions of the letter of credit. A document may not be oral.\n(g) \"Good faith\" means honesty in fact in the conduct or transaction concerned.\n(h) \"Honor\" of a letter of credit means performance of the issuer's undertaking in\nthe letter of credit to pay or deliver an item of value. Unless the letter of credit\notherwise provides, \"honor\" occurs:\n1. Upon payment;\n2. If the letter of credit provides for acceptance, upon acceptance of a draft\nand, at maturity, its payment; or\n3. If the letter of credit provides for incurring a deferred obligation, upon\nincurring the obligation and, at maturity, its performance.\n(i) \"Issuer\" means a bank or other person that issues a letter of credit, but does\nnot include an individual who makes an  engagement for personal, family, or\nhousehold purposes.\n(j) \"Letter of credit\" means a definite undertaking that satisfies the requirements\nof KRS 355.5 -104 by an issuer to a beneficiary at the request or for the\naccount of an applicant or, in the case of  a financial institution, to itself or for\nits own account, to honor a documentary presentation by payment or delivery\nof an item of value.\n(k) \"Nominated person\" means a person whom the issuer:\n1. Designates or authorizes to pay, accept, negotiate, or oth erwise give\nvalue under a letter of credit; and\n2. Undertakes by agreement or custom and practice to reimburse.\n(l) \"Presentation\" means delivery of a document to an issuer or nominated person\nfor honor or giving of value under a letter of credit.\n(m) \"Presenter\" means a person making a presentation as or on behalf of a\nbeneficiary or nominated person.\n(n) \"Record\" means information that is inscribed on a tangible medium, or that is\nstored in an electronic or other medium and is retrievable in perceivable form.\n(o) \"Successor of a beneficiary\" means a person who succeeds to substantially all\nof the rights of a beneficiary by operation of law, including a corporation with\nor into which the beneficiary has been merged or consolidated, an\nadministrator, executor, personal representative, trustee in bankruptcy, debtor\nin possession, liquidator, and receiver.\n(2) Definitions in other articles in this chapter applying to this article and the sections in\nwhich they appear are:\n\"Accept\" or \"Acceptance\"    KRS 355.3-409;\n\"Value\"        KRS 355.3-303 and 355.4-211.\n(3) Article 1 of this chapter contains certain additional general definitions and\nprinciples of construction and interpretation applicable throughout this article.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=33594","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:45Z","sha256":"29d84275f1a9a33ba4d61bec900da5f5ecf0d1bfdfa83c56628e113ba810f607","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.5-101","next":"us-ky/krs-355.5-103"},"notice":"GroundRules: Original legal text. Not legal advice."}