<html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 57A-5-103 - Scope. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2073525Normal { margin-top: 0; margin-bottom: 0; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2073525SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073525CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2073525Normal-000000 { margin-top: 0; margin-bottom: 0; text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2073525DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2073525Normal-000001 { margin-top: 0; margin-bottom: 0; text-indent: 0.25in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2073525000002 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073525SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073525SCL-000003 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } body { text-decoration-skip-ink: none; } </style></head><body><div><p dir="ltr" class="s2073525Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-5-103"><span class="s2073525SENU">57A-5-103</span></a><span xml:space="preserve" class="s2073525SENU">. </span><span class="s2073525CL">Scope.</span></p><p dir="ltr" class="s2073525Normal-000000"><span class="s2073525DefaultParagraphFont">(a) This chapter applies to letters of credit and to certain rights and obligations arising out of transactions involving letters of credit.</span></p><p dir="ltr" class="s2073525Normal-000001"><span class="s2073525DefaultParagraphFont">(b) The statement of a rule in this chapter 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 chapter.</span></p><p dir="ltr" class="s2073525Normal-000001"><span xml:space="preserve" class="s2073525DefaultParagraphFont">(c) With the exception of this subsection, subsections (a) and (d), §§ 57A-5-102(a)(9) and (10), 57A-5-106(d), and 57A-5-114(d), and except to the extent prohibited in §§ </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-1-302"><span class="s2073525DefaultParagraphFont">57A-1-302</span></a><span xml:space="preserve" class="s2073525DefaultParagraphFont"> and 57A-5-117(d), the effect of this chapter 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 chapter.</span></p><p dir="ltr" class="s2073525Normal-000001"><span class="s2073525DefaultParagraphFont">(d) 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.</span></p><p dir="ltr" class="s2073525Normal"><span xml:space="preserve" class="s2073525000002"> </span></p><p dir="ltr" class="s2073525Normal"><span class="s2073525SCL">Source:</span><span xml:space="preserve" class="s2073525SCL-000003"> SL 1998, ch 283, § 1; SL 2008, ch 259, § 40.</span></p></div></body></html>