Ohio § 1305.16
Full text of Ohio Ohio Revised Code § 1305.16, with citation guidance and answers to common questions.
§ 1305.16.
(A) An issuer that honors a beneficiary's presentation is subrogated to the rights of
the beneficiary to the same extent as if the issuer were a secondary obligor of the
underlying obligation owed to the beneficiary and of the applicant to the same extent
as if the issuer were the secondary obligor of the underlying obligation owed to the
applicant. (B) An applicant that reimburses an issuer is subrogated to the rights of the issuer
against any beneficiary, presenter, or nominated person to the same extent as if the
applicant were the secondary obligor of the obligations owed to the issuer and has
the rights of subrogation of the issuer to the rights of the beneficiary stated in
division (A) of this section. (C) A nominated person who pays or gives value against a draft or demand presented under
a letter of credit is subrogated to the rights of: (1) The issuer against the applicant to the same extent as if the nominated person were
a secondary obligor of the obligation owed to the issuer by the applicant; (2) The beneficiary to the same extent as if the issuer were a secondary obligor of the
underlying obligation owed to the beneficiary; and (3) The applicant to the same extent as if the nominated person were the secondary obligor
of the underlying obligation owed to the applicant. (D) Notwithstanding any agreement or term to the contrary, the rights of subrogation
stated in divisions (A) and (B) of this section do not arise until the issuer honors
the letter of credit or otherwise pays and the rights in division (C) of this section
do not arise until the nominated person pays or otherwise gives value. Until then, the issuer, nominated person, and the applicant do not derive under
this section present or prospective rights forming the basis of a claim, defense,
or excuse.
Frequently Asked Questions About Ohio § 1305.16
What does Ohio Revised Code § 1305.16 cover?
Section 1305.16 is part of the Ohio Revised Code, the codified statutory law of Ohio. 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 Ohio § 1305.16?
A common citation format is "Ohio Revised Code § 1305.16" (Ohio). 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 Ohio law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Ohio official source linked on this page or consult a licensed Ohio attorney.
How does Ohio § 1305.16 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Ohio 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 Ohio.