AB1036,14,5 (8) An issuer that has dishonored a presentation shall return the documents or hold them at the disposal of, and send advice to that effect to, the presenter.

AB1036,14,7 (9) An issuer that has honored a presentation as permitted or required by this chapter:

AB1036,14,9 (a) Is entitled to be reimbursed by the applicant in immediately available funds not later than the date of its payment of funds;

AB1036,14,10 (b) Takes the documents free of claims of the beneficiary or presenter;

AB1036,14,12 (c) Is precluded from asserting a right of recourse on a draft under ss. 403.414 and 403.415;

AB1036,14,16 (d) Except as otherwise provided in ss. 405.110 and 405.117, is precluded from restitution of money paid or other value given by mistake to the extent the mistake concerns discrepancies in the documents or tender that are apparent on the face of the presentation; and

AB1036,14,19 (e) Is discharged to the extent of its performance under the letter of credit unless the issuer honored a presentation in which a required signature of a beneficiary was forged.

AB1036,14,23 405.109 Fraud and forgery. (1) If a presentation is made that appears on its face strictly to comply with the terms and conditions of the letter of credit, but a required document is forged or materially fraudulent, or honor of the presentation would facilitate a material fraud by the beneficiary on the issuer or applicant:

AB1036,14,25 (a) The issuer shall honor the presentation, if honor is demanded by any of the following:

AB1036,15,2 1. A nominated person that has given value in good faith and without notice of forgery or material fraud.

AB1036,15,3 2. A confirmer that has honored its confirmation in good faith.

AB1036,15,5 3. A holder in due course of a draft drawn under the letter of credit that was taken after acceptance by the issuer or nominated person.

AB1036,15,8 4. An assignee of the issuer's or nominated person's deferred obligation that was taken for value and without notice of forgery or material fraud after the obligation was incurred by the issuer or nominated person.

AB1036,15,10 (b) The issuer, acting in good faith, may honor or dishonor the presentation in any case not described under par. (a).

AB1036,15,16 (2) If an applicant claims that a required document is forged or materially fraudulent or that honor of the presentation would facilitate a material fraud by the beneficiary on the issuer or applicant, a court of competent jurisdiction may temporarily or permanently enjoin the issuer from honoring a presentation or grant similar relief against the issuer or other persons only if the court finds that all of the following conditions are met:

AB1036,15,18 (a) The relief is not prohibited under the law applicable to an accepted draft or deferred obligation incurred by the issuer.

AB1036,15,20 (b) A beneficiary, issuer, or nominated person who may be adversely affected is adequately protected against loss that it may suffer because the relief is granted.

AB1036,15,22 (c) All of the conditions to entitle a person to the relief under the law of this state have been met.

AB1036,15,25 (d) On the basis of the information submitted to the court, the applicant is more likely than not to succeed under its claim of forgery or material fraud and the person demanding honor does not qualify for protection under sub. (1) (a).

AB1036,16,2 405.110 Warranties. (1) If its presentation is honored, the beneficiary warrants all of the following:

AB1036,16,4 (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 s. 405.109 (1).

AB1036,16,7 (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.

AB1036,16,10 (2) The warranties in sub. (1) are in addition to warranties arising under chs. 403, 404, 407, and 408 because of the presentation or transfer of documents covered by any of those chapters.

AB1036,16,23 405.111 Remedies. (1) If an issuer wrongfully dishonors or repudiates its obligation to pay money under a letter of credit before presentation, the beneficiary, successor, or nominated person presenting on its own behalf may recover from the issuer the amount that is the subject of the dishonor or repudiation. If the issuer's obligation under the letter of credit is not for the payment of money, the claimant may obtain specific performance or, at the claimant's election, recover an amount equal to the value of performance from the issuer. In either case, the claimant may also recover incidental but not consequential damages. The claimant is not obligated to take action to avoid damages that might be due from the issuer under this subsection. If, although not obligated to do so, the claimant avoids damages, the claimant's recovery from the issuer must be reduced by the amount of damages avoided. The issuer has the burden of proving the amount of damages avoided. In the case of repudiation the claimant need not present any document.

AB1036,17,2 (2) If an issuer wrongfully dishonors a draft or demand presented under a letter of credit or honors a draft or demand in breach of its obligation to the applicant, the applicant may recover damages resulting from the breach, including incidental but not consequential damages, less any amount saved as a result of the breach.

AB1036,17,8 (3) If an adviser or nominated person other than a confirmer breaches an obligation under this chapter or an issuer breaches an obligation not covered in sub. (1) or (2), a person to whom the obligation is owed may recover damages resulting from the breach, including incidental but not consequential damages, less any amount saved as a result of the breach. To the extent of the confirmation, a confirmer has the liability of an issuer specified in this subsection and subs. (1) and (2).

AB1036,17,11 (4) An issuer, nominated person, or adviser who is found liable under sub. (1), (2), or (3) shall pay interest on the amount owed thereunder from the date of wrongful dishonor or other appropriate date.

AB1036,17,13 (5) Reasonable attorney's fees and other expenses of litigation shall be awarded to the prevailing party in an action in which a remedy is sought under this chapter.

AB1036,17,16 (6) Damages that would otherwise be payable by a party for breach of an obligation under this chapter may be liquidated by agreement or undertaking, but only in an amount or by a formula that is reasonable in light of the harm anticipated.