(a) Sections 1221-1236 of this title apply to letters of credit and to certain rights and obligations arising out of transactions involving letters of credit.\n(b) The statement of a rule in §§ 1221-1236 of this title 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 §§ 1221-1236 of this title.\n(c) With the exception of this subsection, subsections (a) and (d) of this section, §§ 1221(a)(9) and (10), 1225(d), and 1233(d) of this title, and except to the extent prohibited in §§ 451(3) and 1236(d) of this title, the effect of §§ 1221-1236 of this title 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 §§ 1221-1236 of this title.\n(d) 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 ions 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.\nHistory —Sept. 19, 1996, No. 241, added as § 5-103 on Dec. 31, 1997, No. 214, § 1, eff. Jan. 1, 1998.
Puerto Rico Legal Code