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Mich. Comp. Laws § 440.5110

Warranties on presentment or transfer

Applied in 3 court decisions — leading case 240 F. Supp. 2d 632 - Krause v. Stroh Brewery Co. (2002)

Most recently applied in Alhadeff v. Meridian on Bainbridge Island, LLC (June 2008)

1962, Act 174, Eff

Sec. 5110. (1) If presentation is honored, the beneficiary warrants: (a) 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 5109(1). (b) 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. (2) The warranties in subsection (1) 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.

Official source: Michigan Legislature. Reproduced from public-domain Michigan statutes; confirm against the official source for the current text. Not legal advice.