{"data":{"id":"us-mi/mich.-comp.-laws-440.5117","jurisdiction":"us-mi","citation":"Mich. Comp. Laws § 440.5117","heading":"Rights of subrogation.","body":"Sec. 5117.\n\nAn 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.\n\nAn 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 (1).\n\nA nominated person who pays or gives value against a draft or demand presented under a letter of credit is subrogated to the rights of all of the following:\n\nThe 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.\n\nThe beneficiary to the same extent as if the nominated person were a secondary obligor of the underlying obligation owed to the beneficiary.\n\nThe applicant to the same extent as if the nominated person were a secondary obligor of the underlying obligation owed to the applicant.\n\nNotwithstanding any agreement or term to the contrary, the rights of subrogation stated in subsections (1) and (2) do not arise until the issuer honors the letter of credit or otherwise pays and the rights in subsection (3) 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.","path":["MI Code","Chapter 440","Act Act-174-of-1962"],"source_url":"https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-440-5117","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:31Z","sha256":"b3f6b19b4728b776655cba493f2dd9727bf00a9af34a85d20ee402d0b974a718","source_id":"us-mi","stale":false,"prev":"us-mi/mich.-comp.-laws-440.5116","next":"us-mi/mich.-comp.-laws-440.5118"},"notice":"GroundRules: Original legal text. Not legal advice."}