The Arizona Revised Statutes have been updated to include the revised sections from the 56th Legislature, 1st Regular Session. Please note that the next update of this compilation will not take place until after the conclusion of the 56th Legislature, 2nd Regular Session, which convenes in January 2024.
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This online version of the Arizona Revised Statutes is primarily maintained for legislative drafting purposes and reflects the version of law that is effective on January 1st of the year following the most recent legislative session. The official version of the Arizona Revised Statutes is published by Thomson Reuters.
47-5118 - Security interest of issuer or nominated person
47-5118. 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. As 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 chapter 9 of this title, but:
1. A security agreement is not necessary to make the security interest enforceable under section 47-9203, subsection B, paragraph 3;
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 conflicting security interest in the document as long as the debtor does not have possession of the document.