Tex. Bus. & Com. Code § 5.118 · Chapter 5. LETTERS OF CREDIT
SECURITY INTEREST OF ISSUER OR NOMINATED PERSON.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(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), the security interest continues and is subject to Chapter 9, but:
(1) a security agreement is not necessary to make the security interest enforceable under Section 9.203(b)(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 a conflicting security interest in the document so long as the debtor does not have possession of the document.
Notes and commentary — not statutory text
History
Added by Acts 1999, 76th Leg., ch. 414, Sec. 2.24, eff. July 1, 2001.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/BC/htm/BC.5.htm
- Text hash
- sha256 9724798807bfa0c8994129bcf5ecd78808928264cdd60c76ab478e7a2a40fb21
- Composed by
- compose_tx.py 2026-10-05: the Legislative Council's chapter files read in document order; verify_tx.py's independent reading (lxml DOM walk) agrees character for character
This section cites
Provisions in this library that the text above cites, as it prints each citation. A range cited as “ss. 61.13-61.16” links its first and last provisions.
Cited by 5 provisions
Provisions in this library whose text cites Tex. Bus. & Com. Code § 5.118. Each shows the citation as that text prints it.
Business & Commerce Code
- Tex. Bus. & Com. Code § 9.102DEFINITIONS AND INDEX OF DEFINITIONS.Printed as Section 2.401, 2.505, 2.711(c), 2A.508(e), 4.210, or 5.118
- Tex. Bus. & Com. Code § 9.109SCOPE.Printed as Section 4.210 or 5.118
- Tex. Bus. & Com. Code § 9.203ATTACHMENT AND ENFORCEABILITY OF SECURITY INTEREST; PROCEEDS; SUPPORTING OBLIGATIONS; FORMAL REQUISITES.Printed as Section 5.118
- Tex. Bus. & Com. Code § 9.309SECURITY INTEREST PERFECTED UPON ATTACHMENT.Printed as Section 5.118
- Tex. Bus. & Com. Code § 9.322PRIORITIES AMONG CONFLICTING SECURITY INTERESTS IN AND AGRICULTURAL LIENS ON SAME COLLATERAL.Printed as Section 5.118
Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.