Mich. Comp. Laws » Michigan Compiled Laws / Chapter 440 / Act 174 of 1962
Michigan Compiled Laws

Mich. Comp. Laws § 440.5103 (2026)

Letters of credit; scope of article.

✓ current as of July 2026
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UNIFORM COMMERCIAL CODE


Act 174 of 1962


440.5103 Letters of credit; scope of article.

Sec. 5103.

    (1) This article applies to letters of credit and to certain rights and obligations arising out of transactions involving letters of credit.

    (2) The statement of a rule in this article 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 this article.

    (3) With the exception of this subsection, subsections (1) and (4), sections 5102(1)(i) and (j), 5106(4), and 5114(4), and except to the extent prohibited in sections 1302 and 5117(4), the effect of this article 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 this article.

    (4) 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 of credit arises or which underlies it, including contracts or arrangements between the issuer and the applicant and between the applicant and the beneficiary.

History: 1962, Act 174, Eff. Jan. 1, 1964 ;-- Am. 1998, Act 488, Imd. Eff. Jan. 4, 1999 ;-- Am. 2012, Act 86, Eff. July 1, 2013

Notes of Decisions
Cited in 4 cases (1 in the last 5 years), 1982–2024 · leading case: Osten Meat Co. v. First of Am. Bank-Se. Michigan, 517 N.W.2d 742 (Mich. Ct. App. 1994).
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Osten Meat Co. v. First of Am. Bank-Se. Michigan, 517 N.W.2d 742 (Mich. Ct. App. 1994). “” UCC 5103(l)(a); MCL 440.5103(l)(a); MSA 19.5103(l)(a). A letter of credit is a contract between the bank and the beneficiary of the credit that is separate and distinct from the commercial contract between the beneficiary, usually the seller, and the bank’s customer, usually…”
Fed. Deposit Ins. v. Cuvrell (In Re F & T Contractors, Inc.), 17 B.R. 966 (Bankr. E.D. Mich. 1982). “Section 5-103 of the Uniform Commercial Code defines a customer as “a buyer or other person who causes an issuer to issue a credit.”
Van Zeeland Oil Co., Inc. v. Lawrence Agency, Inc., 704 F. Supp. 2d 711 (W.D. Mich. 2010). · cites it 2× “Mich. Comp. Laws § 440.5103 (4). Further, Article 5 makes clear that except in cases involving fraud: an issuer shall honor a presentation that, as determined by the standard practice referred to in subsection (5), appears on its face strictly to comply with the terms and…”
Infinity Acquisitions LLC v. Sardinia Inc (Mich. Ct. App. 2024). “’ ” Osten Meat Co v First of America Bank-Southeast Mich, NA, 205 Mich App 686, 689 ; 517 NW2d 742 (1994), quoting UCC 5-103(1)(a) and the former MCL 440.5103(1)(a). A letter of credit is considered enforceable according to its terms against the issuer when sent to the intended…”
— Mich. Comp. Laws § 440.5103(1)(a) — 1 case
Infinity Acquisitions LLC v. Sardinia Inc (Mich. Ct. App. 2024). “’ ” Osten Meat Co v First of America Bank-Southeast Mich, NA, 205 Mich App 686, 689 ; 517 NW2d 742 (1994), quoting UCC 5-103(1)(a) and the former MCL 440.5103(1)(a). A letter of credit is considered enforceable according to its terms against the issuer when sent to the intended…”
— Mich. Comp. Laws § 440.5103(l)(a) — 1 case
Osten Meat Co. v. First of Am. Bank-Se. Michigan, 517 N.W.2d 742 (Mich. Ct. App. 1994). “” UCC 5103(l)(a); MCL 440.5103(l)(a); MSA 19.5103(l)(a). A letter of credit is a contract between the bank and the beneficiary of the credit that is separate and distinct from the commercial contract between the beneficiary, usually the seller, and the bank’s customer, usually…”
— Mich. Comp. Laws § 440.5103(l)(g) — 1 case
Fed. Deposit Ins. v. Cuvrell (In Re F & T Contractors, Inc.), 17 B.R. 966 (Bankr. E.D. Mich. 1982). “Section 5-103 of the Uniform Commercial Code defines a customer as “a buyer or other person who causes an issuer to issue a credit.”
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