Louisiana § RS 10:5-118 - Security interest of issuer or nominated person
Full text of Louisiana Louisiana Civil Code § RS 10:5-118 — Security interest of issuer or nominated person, with citation guidance and answers to common questions.
§ RS 10:5-118. Security interest of issuer or nominated person
(a) An issuer or nominated person has a security interest in a document presented under a letter of credit and any identifiable proceeds of the collateral to the extent that the issuer or nominated person honors or gives value for the presentation.
(b) Subject to subsection (c), as 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 under subsection (a), the security interest continues and is subject to Chapter 9, but:
(1) a security agreement is not necessary to make the security interest enforceable under R.S. 10:9-203(b)(3); and
(2) the security interest is perfected and has priority over conflicting security interests in the collateral or its proceeds.
(c) A security interest that arises under this section is subject to the rights of a subsequent purchaser under R.S. 10:9-330 or 9-331 or a transferee under R.S. 10:9-332.
Acts 2001, No. 128, §7, eff. July 1, 2001.
Source: official Louisiana text · Last verified 2026-08-27
Frequently Asked Questions About Louisiana § RS 10:5-118
What does Louisiana Civil Code § RS 10:5-118 cover?
Section RS 10:5-118 ("Security interest of issuer or nominated person") is part of the Louisiana Civil Code, the codified statutory law of Louisiana. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Louisiana § RS 10:5-118?
A common citation format is "Louisiana Civil Code § RS 10:5-118" (Louisiana). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Louisiana law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Louisiana official source linked on this page or consult a licensed Louisiana attorney.
How does Louisiana § RS 10:5-118 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Louisiana can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Louisiana.