{"data":{"id":"us-ok/okla.-stat.-tit.-12a-12a-5-109","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 12A, § 12A-5-109","heading":"Fraud and Forgery","body":"Fraud and Forgery.\n\n(a) If a presentation is made that appears on its face strictly\n\nto comply with the terms and conditions of the letter of credit, but\n\na required document is forged or materially fraudulent, or honor of\n\nthe presentation would facilitate a material fraud by the\n\nbeneficiary on the issuer or applicant:\n\n(1) The issuer shall honor the presentation, if honor is\n\ndemanded by:\n\n(i) a nominated person who has given value in good\n\nfaith and without notice of forgery or material\n\nfraud;\n\n(ii) a confirmer who has honored its confirmation in\n\ngood faith;\n\n(iii) a holder in due course of a draft drawn under the\n\nletter of credit which was taken after acceptance\n\nby the issuer or nominated person; or\n\n(iv) an assignee of the issuer's or nominated person's\n\ndeferred obligation that was taken for value and\n\nwithout notice of forgery or material fraud after\n\nthe obligation was incurred by the issuer or\n\nnominated person; and\n\n(2) The issuer, acting in good faith, may honor or\n\ndishonor the presentation in any other case.\n\n(b) If an applicant claims that a required document is forged\n\nor materially fraudulent or that honor of the presentation would\n\nfacilitate a material fraud by the beneficiary on the issuer or\n\napplicant, a court of competent jurisdiction may temporarily or\n\npermanently enjoin the issuer from honoring a presentation or grant\n\nsimilar relief against the issuer or other persons only if the court\n\nfinds that:\n\n(1) The relief is not prohibited under the law applicable\n\nto an accepted draft or deferred obligation incurred\n\nby the issuer;\n\n(2) A beneficiary, issuer, or nominated person who may be\n\nadversely affected is adequately protected against\n\nloss that it may suffer because the relief is granted;\n\n(3) All of the conditions to entitle a person to the\n\nrelief under the law of this state have been met; and\n\n(4) On the basis of the information submitted to the\n\ncourt, the applicant is more likely than not to\n\nsucceed under its claim of forgery or material fraud\n\nand the person demanding honor does not qualify for\n\nprotection under paragraph (1) of subsection (a) of\n\nthis section.","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":"54549b7020ad91e95436458dde2b59c4e118353ed0493d8e4bbd55d9d18f0ae6","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-12a-12a-5-108","next":"us-ok/okla.-stat.-tit.-12a-12a-5-110"},"notice":"GroundRules: Original legal text. Not legal advice."}