Nevada § 104.5111 - Remedies

§ 104.5111. Remedies

1. If an issuer wrongfully dishonors or repudiates its obligation to pay money under

a letter of credit before presentation, the beneficiary, successor or nominated person

presenting on its own behalf may recover from the issuer the amount that is the subject

of the dishonor or repudiation. If the issuer's obligation under the letter of credit is not for the payment of money,

the claimant may obtain specific performance or, at the claimant’s election, recover

an amount equal to the value of performance from the issuer. In either case, the claimant may also recover incidental but not consequential damages.

The claimant is not obligated to take action to avoid damages that might be due from

the issuer under this subsection. If, although not obligated to do so, the claimant avoids damages, the claimant's recovery

from the issuer must be reduced by the amount of damages avoided. The issuer has the burden of proving the amount of damages avoided. In the case of repudiation the claimant need not present any document. 2. If an issuer wrongfully dishonors a draft or demand presented under a letter of

credit or honors a draft or demand in breach of its obligation to the applicant, the

applicant may recover damages resulting from the breach, including incidental but

not consequential damages, less any amount saved as a result of the breach. 3. If an adviser or nominated person other than a confirmer breaches an obligation

under this article or an issuer breaches an obligation not covered in subsection 1

or 2, a person to whom the obligation is owed may recover damages resulting from the

breach, including incidental but not consequential damages, less any amount saved

as a result of the breach. To the extent of the confirmation, a confirmer has the liability of an issuer specified

in this subsection and subsections 1 and 2. 4. An issuer, nominated person or adviser who is found liable under subsection 1,

2 or 3 shall pay interest on the amount owed thereunder from the date of wrongful

dishonor or other appropriate date. 5. Reasonable attorney's fees and other expenses of litigation must be awarded to

the prevailing party in an action in which a remedy is sought under this article. 6. Damages that would otherwise be payable by a party for breach of an obligation

under this article may be liquidated by agreement or undertaking, but only in an amount

or by a formula that is reasonable in light of the harm anticipated.