{"data":{"id":"us-pa/13-pa.c.s.-5118","jurisdiction":"us-pa","citation":"13 Pa.C.S. § 5118","heading":"Security interest of issuer or nominated person.","body":"(a) General rule.--An issuer or nominated person has a security interest in a document presented under a letter of credit to the extent that the issuer or nominated person honors or gives value for the presentation.\n(b) Duration.--So long as and to the extent that an issuer or nominated person has not been reimbursed or has not otherwise recovered the value given with respect to a security interest in a document under subsection (a), the security interest continues and is subject to Division 9 (relating to secured transactions), but:\n(1) a security agreement is not necessary to make the security interest enforceable under section 9203(b)(3) (relating to attachment and enforceability of security interest; proceeds; supporting obligations; formal requisites);\n(2) if the document is presented in a medium other than a written or other tangible medium, the security interest is perfected; and\n(3) if the document is presented in a written or other tangible medium and is not a certificated security, chattel paper, a document of title, an instrument or a letter of credit, the security interest is perfected and has priority over a conflicting security interest in the document so long as the debtor does not have possession of the document.","path":["Title 13 - COMMERCIAL CODE","CHAPTER 51 LETTERS OF CREDIT"],"source_url":"https://www.palegis.us/statutes/consolidated/view-statute?txtType=HTM\u0026ttl=13\u0026div=0\u0026chpt=51\u0026sctn=18\u0026subsctn=0","current_through":"2025-12-01 (Statute Update stamp, 13 Pa.C.S.)","vintage":"","retrieved_at":"2026-09-02T16:31:03Z","sha256":"b075d1c2bac8b27e0c05be980353c12d1effccc114a8bf3a71daa681c94884df","source_id":"us-pa","stale":false,"prev":"us-pa/13-pa.c.s.-5117","next":"us-pa/13-pa.c.s.-7101"},"notice":"GroundRules: Original legal text. Not legal advice."}