554.5118 Security interest of issuer or nominated person. 1. An issuer or nominated person has a security interest in a document presented under a letter of credit to the extent that the issuer or nominated person honors or gives value forthe presentation. 2. So long as and to the extent that an issuer or nominated person has not been reimbursed or has not otherwise recovered the value given with respect to a security interestin a document under subsection 1, the security interest continues and is subject to Article 9,but: a. a security agreement is not necessary to make the security interest enforceable under section 554.9203, subsection 2, paragraph 'c'; b. if the document is presented in a medium other than a written or other tangible medium, the security interest is perfected; and c. if the document is presented in a written or other tangible medium and is not a certificated security, chattel paper, a document of title, an instrument, or a letter of credit,the security interest is perfected and has priority over a conflicting security interest in thedocument so long as the debtor does not have possession of the document. strument, or a letter of credit,the security interest is perfected and has priority over a conflicting security interest in thedocument so long as the debtor does not have possession of the document. 2000 Acts, ch 1149, §147, 187Referred to in §554.9102, 554.9109, 554.9203, 554.9309, 554.9322 Sat Dec 23 01:57:43 2023 Iowa Code 2024, Section 554.5118 (24, 0)
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