Okla. Stat. tit. 12A, § 12A-5-109
This is the official text of Okla. Stat. tit. 12A, § 12A-5-109, part of Oklahoma’s Stat. tit. 12A, — part of the compiled statutory law of Oklahoma, published by the state as "Stat. tit. 12A,." Browse the sections below, each linked to its official government source.
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Fraud and Forgery
Official statutory text
Fraud and Forgery.
(a) If a presentation is made that appears on its face strictly
to comply with the terms and conditions of the letter of credit, but
a required document is forged or materially fraudulent, or honor of
Oklahoma Statutes - Title 12A. Uniform Commercial Code Page 387
the presentation would facilitate a material fraud by the
beneficiary on the issuer or applicant:
(1) The issuer shall honor the presentation, if honor is
demanded by:
(i) a nominated person who has given value in good
faith and without notice of forgery or material
fraud;
(ii) a confirmer who has honored its confirmation in
good faith;
(iii) a holder in due course of a draft drawn under the
letter of credit which was taken after acceptance
by the issuer or nominated person; or
(iv) an assignee of the issuer's or nominated person's
deferred obligation that was taken for value and
without notice of forgery or material fraud after
the obligation was incurred by the issuer or
nominated person; and
(2) The issuer, acting in good faith, may honor or
dishonor the presentation in any other case.
(b) If an applicant claims that a required document is forged
or materially fraudulent or that honor of the presentation would
facilitate a material fraud by the beneficiary on the issuer or
applicant, a court of competent jurisdiction may temporarily or
permanently enjoin the issuer from honoring a presentation or grant
similar relief against the issuer or other persons only if the court
finds that:
(1) The relief is not prohibited under the law applicable
to an accepted draft or deferred obligation incurred
by the issuer;
(2) A beneficiary, issuer, or nominated person who may be
adversely affected is adequately protected against
loss that it may suffer because the relief is granted;
(3) All of the conditions to entitle a person to the
relief under the law of this state have been met; and
(4) On the basis of the information submitted to the
court, the applicant is more likely than not to
succeed under its claim of forgery or material fraud
and the person demanding honor does not qualify for
protection under paragraph (1) of subsection (a) of
this section.
(a) If a presentation is made that appears on its face strictly
to comply with the terms and conditions of the letter of credit, but
a required document is forged or materially fraudulent, or honor of
Oklahoma Statutes - Title 12A. Uniform Commercial Code Page 387
the presentation would facilitate a material fraud by the
beneficiary on the issuer or applicant:
(1) The issuer shall honor the presentation, if honor is
demanded by:
(i) a nominated person who has given value in good
faith and without notice of forgery or material
fraud;
(ii) a confirmer who has honored its confirmation in
good faith;
(iii) a holder in due course of a draft drawn under the
letter of credit which was taken after acceptance
by the issuer or nominated person; or
(iv) an assignee of the issuer's or nominated person's
deferred obligation that was taken for value and
without notice of forgery or material fraud after
the obligation was incurred by the issuer or
nominated person; and
(2) The issuer, acting in good faith, may honor or
dishonor the presentation in any other case.
(b) If an applicant claims that a required document is forged
or materially fraudulent or that honor of the presentation would
facilitate a material fraud by the beneficiary on the issuer or
applicant, a court of competent jurisdiction may temporarily or
permanently enjoin the issuer from honoring a presentation or grant
similar relief against the issuer or other persons only if the court
finds that:
(1) The relief is not prohibited under the law applicable
to an accepted draft or deferred obligation incurred
by the issuer;
(2) A beneficiary, issuer, or nominated person who may be
adversely affected is adequately protected against
loss that it may suffer because the relief is granted;
(3) All of the conditions to entitle a person to the
relief under the law of this state have been met; and
(4) On the basis of the information submitted to the
court, the applicant is more likely than not to
succeed under its claim of forgery or material fraud
and the person demanding honor does not qualify for
protection under paragraph (1) of subsection (a) of
this section.
Status: in_force · Read it on the official government site
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