Pennsylvania Code § 13-5118

Security interest of issuer or nominated person.
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(a) General rule.-- 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 for the presentation.
(b) Duration.-- 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 interest in a document under subsection (a), the security interest continues and is subject to Division 9 (relating to secured transactions), but:
(1) a security agreement is not necessary to make the security interest enforceable under section 9203(b)(3) (relating to attachment and enforceability of security interest; proceeds; supporting obligations; formal requisites);
(2) if the document is presented in a medium other than a written or other tangible medium, the security interest is perfected; and
(3) 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 the document so long as the debtor does not have possession of the document.
DIVISION 6
BULK TRANSFERS
(Repealed)
CHAPTER 61
BULK TRANSFERS
(Repealed)
DIVISION 7
WAREHOUSE RECEIPTS, BILLS OF LADING
AND OTHER DOCUMENTS OF TITLE
Chapter
71. General
72. Warehouse Receipts: Special Provisions
73. Bills of Lading: Special Provisions
74. Warehouse Receipts and Bills of Lading: General Obligations
75. Warehouse Receipts and Bills of Lading: Negotiation and Transfer
76. Warehouse Receipts and Bills of Lading: Miscellaneous Provisions
Prior Provisions. Former Division 7, which related to the same subject matter, was added November 1, 1979, P.L.255, No.86, and repealed April 16, 2008, P.L.56, No.13, effective in 60 days.
CHAPTER 71
GENERAL
Sec.
7101. Short title of division.
7102. Definitions and index of definitions.
7103. Relation of division to treaty or statute.
7104. Negotiable and nonnegotiable document of title.
7105. Reissuance in alternative medium.
7106. Control of electronic document of title.
Prior Provisions. Former Chapter 71, which related to the same subject matter, was added November 1, 1979, P.L.255, No.86, and repealed April 16, 2008, P.L.57, No.13, effective in 60 days.

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