{"data":{"id":"us-ky/krs-355.5-117","jurisdiction":"us-ky","citation":"KRS 355.5-117","heading":"Subrogation of issuer, applicant, and nominated person.","body":"(1) An issuer that honors a beneficiary's presentation is subrogated to the rights of the\nbeneficiary to the same extent as if the issuer were a secondary obligor of the\nunderlying obligation owed to the beneficiary and of the applicant to the same\nextent as if the issuer were the secondary obligor of the underlying obligation owed\nto the applicant.\n(2) An applicant that reimburses an issuer is subrogated to the rights of the issuer\nagainst any beneficiary, presenter, or nominated person to the same extent as i f the\napplicant were the secondary obligor of the obligations owed to the issuer and has\nthe rights of subrogation of the issuer to the rights of the beneficiary stated in\nsubsection (1) of this section.\n(3) A nominated person who pays or gives value again st a draft or demand presented\nunder a letter of credit is subrogated to the rights of:\n(a) The issuer against the applicant to the same extent as if the nominated person\nwere a secondary obligor of the obligation owed to the issuer by the applicant;\n(b) The beneficiary to the same extent as if the nominated person were a\nsecondary obligor of the underlying obligation owed to the beneficiary; and\n(c) The applicant to same extent as if the nominated person were a secondary\nobligor of the underlying obligation owed to the applicant.\n(4) Notwithstanding any agreement or term to the contrary, the rights of subrogation\nstated in subsections (1) and (2) of this section do not arise until the issuer honors\nthe letter of credit or otherwise pays and the rights in su bsection (3) of this section\ndo not arise until the nominated person pays or otherwise gives value. Until then,\nthe issuer, nominated person, and the applicant do not derive under this section\npresent or prospective rights forming the basis of a claim, defense, or excuse.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=33609","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:46Z","sha256":"00ddbe7f4298d84d6707bb21defce3ef3f5e7b44669d0022e5c628ff1ee83b4e","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.5-116","next":"us-ky/krs-355.5-118"},"notice":"GroundRules: Original legal text. Not legal advice."}