HRS §490:5-103
Scope of letter of credit rules
This section explains when Hawaii's letter of credit rules apply. It says the rules cover letters of credit and related rights and duties. Most rules can be changed by agreement, but some cannot. It also says a bank's duties to the person paid are separate from any underlying contract.
businesses
The statute, as written — Scope
(a) This article applies to letters of credit and to certain rights and obligations arising out of transactions involving letters of credit. (b) The statement of a rule in this article does not by itself require, imply, or negate application of the same or a different rule to a situation not provided for, or to a person not specified, in this article. (c) With the exception of this subsection, subsections (a) and (d), sections 490:5-102(a), 490:5-106(d), and 490:5-114(d), the effect of this article may be varied by agreement or by a provision stated or incorporated by reference in an undertaking, except to the extent prohibited in sections 490:1-302 and 490:5-117(d). A term in an agreement or undertaking generally excusing liability or generally limiting remedies for failure to perform obligations is not sufficient to vary obligations prescribed by this article. (d) Rights and obligations of an issuer to a beneficiary or a nominated person under a letter of credit are independent of the existence, performance, or nonperformance of a contract or arrangement out of which the letter of credit arises or which underlies it, including contracts or arrangements between the issuer and the applicant and between the applicant and the beneficiary.
Sections this one refers to
§490:1-302 Can you change the rules by agreement?
§490:5-102 Key terms used in letter of credit rules
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