Maryland Code § CL-5-117

(a) An issuer that honors a beneficiary's presentation is subrogated to the
rights of the beneficiary to the same extent as if the issuer were a secondary obligor
of the underlying obligation owed to the beneficiary and of the applicant to the same
extent as if the issuer were the secondary obligor of the underlying obligation owed
to the applicant.
(b) An applicant that reimburses an issuer is subrogated to the rights of the
issuer against any beneficiary, presenter, or nominated person to the same extent as
if the applicant were the secondary obligor of the obligations owed to the issuer and
has the rights of subrogation of the issuer to the rights of the beneficiary stated in
subsection (a) of this section.
(c) A nominated person who pays or gives value against a draft or demand
presented under a letter of credit is subrogated to the rights of:
(1) The issuer against the applicant to the same extent as if the
nominated person were a secondary obligor of the obligation owed to the issuer by the
applicant;
(2) The beneficiary to the same extent as if the nominated person
were a secondary obligor of the underlying obligation owed to the beneficiary; and
(3) The applicant to the same extent as if the nominated person were
a secondary obligor of the underlying obligation owed to the applicant.
(d) Notwithstanding any agreement or term to the contrary, the rights of
subrogation stated in subsections (a) and (b) of this section do not arise until the
issuer honors the letter of credit or otherwise pays and the rights in subsection (c) of
this section do not arise until the nominated person pays or otherwise gives value.

Until then, the issuer, nominated person, and the applicant do not derive under this
section present or prospective rights forming the basis of a claim, defense, or excuse.

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