The Vermont Statutes Online
The Statutes below include the actions of the 2025 session of the General Assembly.
NOTE: The Vermont Statutes Online is an unofficial copy of the Vermont Statutes Annotated that is provided as a convenience.
(Cite as: 9A V.S.A. § 5-118)
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§ 5—118. Security interest of issuer or nominated person
(a) 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.
(b) 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) of this section, the security interest continues
and is subject to Article 9 of this title, but:
(1) a security agreement is not necessary to make the security interest enforceable under
subdivision 9—203(b)(3) of this title;
(2) if the document is presented in a medium other than a written or other tangible medium,
the security interest is perfected; and
(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. (Added 1999, No. 106 (Adj. Sess.), § 15, eff. July 1, 2001.)