Florida Statute 675.109 | Lawyer Caselaw & Research

The 2024 Florida Statutes

Title XXXIX
COMMERCIAL RELATIONS

Chapter 675
UNIFORM COMMERCIAL CODE: LETTERS OF CREDIT

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F.S. 675.109

675.109 Fraud and forgery.—

(1) If a presentation is made that appears on its face strictly to comply with the terms and conditions of the letter of credit, but a required document is forged or materially fraudulent, or honor of the presentation would facilitate a material fraud by the beneficiary on the issuer or applicant:

(a) The issuer shall honor the presentation, if honor is demanded by:

1. A nominated person who has given value in good faith and without notice of forgery or material fraud;

2. A confirmer who has honored its confirmation in good faith;

3. A holder in due course of a draft drawn under the letter of credit which was taken after acceptance by the issuer or nominated person; or

4. An assignee of the issuer’s or nominated person’s deferred obligation that was taken for value and without notice of forgery or material fraud after the obligation was incurred by the issuer or nominated person.

(b) The issuer, acting in good faith, may honor or dishonor the presentation in any other case.

(2) If an applicant claims that a required document is forged or materially fraudulent or that honor of the presentation would facilitate a material fraud by the beneficiary on the issuer or applicant, a court of competent jurisdiction may temporarily or permanently enjoin the issuer from honoring a presentation or grant similar relief against the issuer or other persons only if the court finds that:

(a) The relief is not prohibited under the law applicable to an accepted draft or deferred obligation incurred by the issuer;

(b) A beneficiary, issuer, or nominated person who may be adversely affected is adequately protected against loss that it may suffer because the relief is granted;

(d) On the basis of the information submitted to the court, the applicant is more likely than not to succeed under its claim of forgery or material fraud and the person demanding honor does not qualify for protection under paragraph (1)(a).

History.—s. 1, ch. 65-254; s. 1, ch. 99-137.

Note.—s. 5-109, U.C.C.

F.S. 675.109 on Google Scholar

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Amendments to 675.109

Arrestable Offenses / Crimes under Fla. Stat. 675.109

Level: Degree
Misdemeanor/Felony: First/Second/Third

Current data shows no reason an arrest or criminal charge should have occurred directly under Florida Statute 675.109.

Annotations, Discussions, Cases:

Cases Citing Statute 675.109

Total Results: 6

Lennar Homes, LLC v. v. VENTURES, LLC

Court: District Court of Appeal of Florida | Date Filed: 2008-07-16

Citation: 988 So. 2d 660, 2008 WL 2744389

Snippet: payment of the letter of credit pursuant to section 675.109(2) of the Florida Statutes, which states: If an

Intrinsic Values Corp. v. Superintendencia

Court: District Court of Appeal of Florida | Date Filed: 2002-02-06

Citation: 806 So. 2d 616

Snippet: Superintendencia brought an action pursuant to section 675.109(2), Florida Statutes (2001)to prevent First Union

JIM MACON BLDG. CONTRACTORS. INC. v. Lake County

Court: District Court of Appeal of Florida | Date Filed: 2000-06-02

Citation: 763 So. 2d 1223, 41 U.C.C. Rep. Serv. 2d (West) 1210, 2000 Fla. App. LEXIS 6781, 2000 WL 707286

Snippet: Customs and Practice][7]; see also §§ 675.103(1)(a), 675.109, Fla. Stat. (1993). Thus, a letter of credit forms

Cargill, Inc. v. Sunlight Foods, Inc.

Court: District Court of Appeal of Florida | Date Filed: 1991-06-18

Citation: 586 So. 2d 366, 15 U.C.C. Rep. Serv. 2d (West) 208, 1991 Fla. App. LEXIS 5650, 1991 WL 104631

Snippet: [Sunlight] and the beneficiary [Cargill]... ." § 675.109(1)(a), Fla. Stat. (1989). When the beneficiary

Braun v. Intercontinental Bank

Court: District Court of Appeal of Florida | Date Filed: 1985-03-19

Citation: 466 So. 2d 1130, 10 Fla. L. Weekly 735

Snippet: underlying contract between Braun and Griferia. § 675.109(1)(a), Fla. Stat. (1981). See Fidelity National

Lewis State Bank v. Advance Mortg. Corp.

Court: District Court of Appeal of Florida | Date Filed: 1978-08-24

Citation: 362 So. 2d 406, 25 U.C.C. Rep. Serv. (West) 245, 1978 Fla. App. LEXIS 17204

Snippet: $55,790.00 [3] Section 675.109(2), F.S. (1977), requires the issuing bank to examine