§ 554.5111

554.5111 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 personpresenting on its own behalf may recover from the issuer the amount that is the subject ofthe dishonor or repudiation. If the issuer’s obligation under the letter of credit is not forthe payment of money, the claimant may obtain specific performance or, at the claimant’selection, recover an amount equal to the value of performance from the issuer. In eithercase, the claimant may also recover incidental but not consequential damages. The claimantis not obligated to take action to avoid damages that might be due from the issuer under thissubsection. If, although not obligated to do so, the claimant avoids damages, the claimant’srecovery from the issuer must be reduced by the amount of damages avoided. The issuerhas the burden of proving the amount of damages avoided. In the case of repudiation theclaimant need not present any document. 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

ion theclaimant need not present any document. 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 mayrecover damages resulting from the breach, including incidental but not consequentialdamages, less any amount saved as a result of the breach. 3. If an adviser or nominated person other than a confirmer breaches an obligation under this Article or an issuer breaches an obligation not covered in subsection 1 or 2, a personto whom the obligation is owed may recover damages resulting from the breach, includingincidental 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 thissubsection and subsections 1 and 2. 4. An issuer, nominated person, or adviser who is found liable under subsection 1, 2, or 3 shall pay interest on the amount owed thereunder from the date of wrongful dishonor orother appropriate date. 5. Reasonable attorney’s fees and other expenses of litigation must be awarded to the prevailing party in an action in which a remedy is

r from the date of wrongful dishonor orother appropriate date. 5. Reasonable attorney’s fees and other expenses of litigation must be awarded to the prevailing party in an action in which a remedy is sought under this Article. 6. Damages that would otherwise be payable by a party for breach of an obligation under this Article may be liquidated by agreement or undertaking, but only in an amount or by aformula that is reasonable in light of the harm anticipated. [C66, 71, 73, 75, 77, 79, 81, §554.5111]96 Acts, ch 1026, §10, 28 Sat Dec 23 01:57:39 2023 Iowa Code 2024, Section 554.5111 (26, 0)