{"data":{"id":"us-ok/okla.-stat.-tit.-12a-12a-5-108","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 12A, § 12A-5-108","heading":"Issuer's Rights and Obligations","body":"Issuer's Rights and Obligations.\n\n(a) Except as otherwise provided in Section 5-109 of this\n\ntitle, an issuer shall honor a presentation that, as determined by\n\nthe standard practice referred to in subsection (e) of this section,\n\nappears on its face strictly to comply with the terms and conditions\n\nof the letter of credit. Except as otherwise provided in Section 5-\n\n113 of this title and unless otherwise agreed with the applicant, an\n\nissuer shall dishonor a presentation that does not appear so to\n\ncomply.\n\n(b) An issuer has a reasonable time after presentation, but not\n\nbeyond the end of the seventh business day of the issuer after the\n\nday of its receipt of documents:\n\n(1) To honor;\n\n(2) If the letter of credit provides for honor to be\n\ncompleted more than seven (7) business days after\n\npresentation, to accept a draft or incur a deferred\n\nobligation; or\n\n(3) To give notice to the presenter of discrepancies in\n\nthe presentation.\n\n(c) Except as otherwise provided in subsection (d) of this\n\nsection, an issuer is precluded from asserting as a basis for\n\ndishonor any discrepancy if timely notice is not given, or any\n\ndiscrepancy not stated in the notice if timely notice is given.\n\n(d) Failure to give the notice specified in subsection (b) of\n\nthis section or to mention fraud, forgery, or expiration in the\n\nnotice does not preclude the issuer from asserting as a basis for\n\ndishonor fraud or forgery as described in subsection (a) of Section\n\n5-109 of this title or expiration of the letter of credit before\n\npresentation.\n\n(e) An issuer shall observe standard practice of financial\n\ninstitutions that regularly issue letters of credit. Determination\n\nof the issuer's observance of the standard practice is a matter of\n\ninterpretation for the court. The court shall offer the parties a\n\nreasonable opportunity to present evidence of the standard practice.\n\n(f) An issuer is not responsible for:\n\n(1) The performance or nonperformance of the underlying\n\ncontract, arrangement, or transaction;\n\n(2) An act or omission of others; or\n\n(3) Observance or knowledge of the usage of a particular\n\ntrade other than the standard practice referred to in\n\nsubsection (e) of this section.\n\n(g) If an undertaking constituting a letter of credit under\n\nparagraph (10) of subsection (a) of Section 5-102 of this title\n\ncontains nondocumentary conditions, an issuer shall disregard the\n\nnondocumentary conditions and treat them as if they were not stated.\n\n(h) An issuer that has dishonored a presentation shall return\n\nthe documents or hold them at the disposal of, and send advice to\n\nthat effect to, the presenter.\n\n(i) An issuer that has honored a presentation as permitted or\n\nrequired by this article:\n\n(1) Is entitled to be reimbursed by the applicant in\n\nimmediately available funds not later than the date of\n\nits payment of funds;\n\n(2) Takes the documents free of claims of the beneficiary\n\nor presenter;\n\n(3) Is precluded from asserting a right of recourse on a\n\ndraft under Sections 3-414 and 3-415 of this title;\n\n(4) Except as otherwise provided in Sections 5-110 and 5-\n\n117 of this title, is precluded from restitution of\n\nmoney paid or other value given by mistake to the\n\nextent the mistake concerns discrepancies in the\n\ndocuments or tender which are apparent on the face of\n\nthe presentation; and\n\n(5) Is discharged to the extent of its performance under\n\nthe letter of credit unless the issuer honored a\n\npresentation in which a required signature of a\n\nbeneficiary was forged.","path":["OK Code","Title 12A"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os12A.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"93ebf17eae67457deeec53f45961501052275abd545d4a56a3532239db13bf46","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-12a-12a-5-107","next":"us-ok/okla.-stat.-tit.-12a-12a-5-109"},"notice":"GroundRules: Original legal text. Not legal advice."}