HRS §490:5-110
Warranties when a letter of credit is paid
When a letter of credit payment is made, the person getting paid promises that the request is not fraudulent or forged and does not break any agreement with the applicant. These promises are extra to any other promises under other laws about the documents.
beneficiaries
The statute, as written — Warranties
(a) If its presentation is honored, the beneficiary warrants: (1) To the issuer, any other person to whom presentation is made, and the applicant, that there is no fraud or forgery of the kind described in section 490:5-109(a); and (2) To the applicant, that the drawing does not violate any agreement between the applicant and beneficiary or any other agreement intended by them to be augmented by the letter of credit. (b) The warranties in subsection (a) are in addition to warranties arising under articles 3, 4, 7, and 8 because of the presentation or transfer of documents covered by any of those articles.
Sections this one refers to
§490:5-109 Fraud and forgery in letters of credit
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