AB1036,8,18 (g) "Good faith" means honesty in fact in the conduct or transaction concerned.

AB1036,8,21 (h) "Honor" of a letter of credit means performance of the issuer's undertaking in the letter of credit to pay or deliver an item of value. Unless the letter of credit otherwise provides, honor occurs in any of the following circumstances:

AB1036,8,22 1. Upon payment.

AB1036,8,24 2. If the letter of credit provides for acceptance, upon acceptance of a draft and, at maturity, its payment.

AB1036,9,2 3. If the letter of credit provides for incurring a deferred obligation, upon incurring the obligation and, at maturity, its performance.

AB1036,9,5 (i) "Issuer" means a bank or other person that issues a letter of credit, but does not include an individual who makes an engagement for personal, family, or household purposes.

AB1036,9,10 (j) "Letter of credit" means a definite undertaking that satisfies the requirements of s. 405.104 by an issuer to a beneficiary at the request or for the account of an applicant or, in the case of a financial institution, to itself or for its own account, to honor a documentary presentation by payment or delivery of an item of value.

AB1036,9,11 (k) "Nominated person" means a person whom the issuer:

AB1036,9,13 1. Designates or authorizes to pay, accept, negotiate, or otherwise give value under a letter of credit; and

AB1036,9,14 2. Undertakes by agreement or custom and practice to reimburse.

AB1036,9,16 (L) "Presentation" means delivery of a document to an issuer or nominated person for honor or giving of value under a letter of credit.

AB1036,9,18 (m) "Presenter" means a person making a presentation as or on behalf of a beneficiary or nominated person.

AB1036,9,20 (n) "Record" means information that is inscribed on a tangible medium, or that is stored in an electronic or other medium, and is retrievable in perceivable form.

AB1036,9,25 (o) "Successor of a beneficiary" means a person who succeeds to substantially all of the rights of a beneficiary by operation of law, including a corporation with or into which the beneficiary has been merged or consolidated, an administrator, executor, personal representative, trustee in bankruptcy, debtor in possession, liquidator, and receiver.

AB1036,10,2 (2) Definitions in other chapters applying to this chapter and the sections in which they appear are:

AB1036,10,3 (a) "Accept" or "acceptance", s. 403.409.

AB1036,10,4 (b) "Value", ss. 403.303 and 404.211

AB1036,10,6 (3) Chapter 401 contains certain additional general definitions and principles of construction and interpretation applicable throughout this chapter.

AB1036,10,8 405.103 Scope. (1) This chapter applies to letters of credit and to certain rights and obligations arising out of transactions involving letters of credit.

AB1036,10,11 (2) The statement of a rule in this chapter 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 chapter.

AB1036,10,18 (3) With the exception of this subsection, subs. (1) and (4), ss. 405.102 (1) (i) and (j), 405.106 (4) and 405.114 (4), and except to the extent prohibited in ss. 401.102 (3) and 405.117 (4), the effect of this chapter may be varied by agreement or by a provision stated or incorporated by reference in an undertaking. 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 chapter.

AB1036,10,23 (4) 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.

AB1036,11,3 405.104 Formal requirements. A letter of credit, confirmation, advice, transfer, amendment, or cancellation may be issued in any form that is a record and is authenticated by any of the following methods:

AB1036,11,4 (1) A signature.

AB1036,11,6 (2) In accordance with the agreement of the parties or the standard practice referred to in s. 405.108 (5).

AB1036,11,8 405.105 Consideration. Consideration is not required to issue, amend, transfer, or cancel a letter of credit, advice, or confirmation.

AB1036,11,12 405.106 Issuance, amendment, cancellation, and duration. (1) A letter of credit is issued and becomes enforceable according to its terms against the issuer when the issuer sends or otherwise transmits it to the person requested to advise or to the beneficiary. A letter of credit is revocable only if it so provides.

AB1036,11,17 (2) After a letter of credit is issued, rights and obligations of a beneficiary, applicant, confirmer, and issuer are not affected by an amendment or cancellation to which that person has not consented except to the extent the letter of credit provides that it is revocable or that the issuer may amend or cancel the letter of credit without that consent.

AB1036,11,20 (3) If there is no stated expiration date or other provision that determines its duration, a letter of credit expires one year after its stated date of issuance or, if none is stated, after the date on which it is issued.