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Arkansas Code Annotated

Ark. Code Ann. § 4-5-106 (2026)

Issuance, amendment, cancellation, and duration

✓ current as of May 2026
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  1. A letter of credit is issued and becomes enforceable according to its terms against the issuer when the issuer sends or otherwise transmits it to the person requested to advise or to the beneficiary. A letter of credit is revocable only if it so provides.
  2. After a letter of credit is issued, rights and obligations of a beneficiary, applicant, confirmer, and issuer are not affected by an amendment or cancellation to which that person has not consented except to the extent the letter of credit provides that it is revocable or that the issuer may amend or cancel the letter of credit without that consent.
  3. If there is no stated expiration date or other provision that determines its duration, a letter of credit expires one (1) year after its stated date of issuance or, if none is stated, after the date on which it is issued.
  4. A letter of credit that states that it is perpetual expires five (5) years after its stated date of issuance, or if none is stated, after the date on which it is issued.
  5. The provisions of subsections (c) and (d) of this section shall not apply to letters of credit issued at any time to the Workers' Compensation Commission.

History. Acts 1997, No. 1070, § 1; 1999, No. 1265, § 1.

Amendments. The 1999 amendment added (e).

Notes of Decisions
Cited in 2 cases, 1989–1992 · leading case: Sugarloaf Mining Co. v. Arkansas Dep't of Pollution Control & Ecology, 840 S.W.2d 172 (Ark. 1992).
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Sugarloaf Mining Co. v. Arkansas Dep't of Pollution Control & Ecology, 840 S.W.2d 172 (Ark. 1992). · cites it 4× “" Section 4-5-106(2) specifies two of the parties, the account party and the beneficiary, must consent to any modification, and § 4-5-104 requires not just that the credit be a signed writing but that the confirmation and amendments be signed by the issuer as well.”
Universal Sec. Ins. v. Ring, 769 S.W.2d 750 (Ark. 1989). · cites it 4× “See Ark. Code Ann. § 4-5-106 (2) (1987). It authorized sight drafts by appellant if as surety Universal had executed a bond or bonds on behalf of Southland.”
— Ark. Code Ann. § 4-5-106(2) — 2 cases
Sugarloaf Mining Co. v. Arkansas Dep't of Pollution Control & Ecology, 840 S.W.2d 172 (Ark. 1992). “" Section 4-5-106(2) specifies two of the parties, the account party and the beneficiary, must consent to any modification, and § 4-5-104 requires not just that the credit be a signed writing but that the confirmation and amendments be signed by the issuer as well.”
Universal Sec. Ins. v. Ring, 769 S.W.2d 750 (Ark. 1989). “See Ark. Code Ann. § 4-5-106 (2) (1987). It authorized sight drafts by appellant if as surety Universal had executed a bond or bonds on behalf of Southland.”
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