Ohio § 1305.08

§ 1305.08.

(A) If a presentation is made that appears on its face strictly to comply with the terms

and conditions of the letter of credit, but a required document is forged or materially

fraudulent, or honor of the presentation would facilitate a material fraud by the

beneficiary on the issuer or applicant: (1) The issuer shall honor the presentation, if honor is demanded by (a) a nominated

person who has given value in good faith and without notice of forgery or material

fraud, (b) a confirmer who has honored its confirmation in good faith, (c) a holder

in due course of a draft drawn under the letter of credit which was taken after acceptance

by the issuer or nominated person, or (d) an assignee of the issuer's or nominated

person's deferred obligation that was taken for value and without notice of forgery

or material fraud after the obligation was incurred by the issuer or nominated person;

 and (2) The issuer, acting in good faith, may honor or dishonor the presentation in any other

case. (B) If an applicant claims that a required document is forged or materially fraudulent

or that honor of the presentation would facilitate a material fraud by the beneficiary

on the issuer or applicant, a court of competent jurisdiction may temporarily or permanently

enjoin the issuer from honoring a presentation or grant similar relief against the

issuer or other persons only if the court finds that: (1) The relief is not prohibited under the law applicable to an accepted draft or deferred

obligation incurred by the issuer; (2) A beneficiary, issuer, or nominated person who may be adversely affected is adequately

protected against loss that it may suffer because the relief is granted; (3) All of the conditions to entitle a person to the relief under the law of this state

have been met;  and (4) On the basis of the information submitted to the court, the applicant is more likely

than not to succeed under its claim of forgery or material fraud and the person demanding

honor does not qualify for protection under division (A)(1) of this section.