Vermont § 118 - § 5—118.

§ 118. § 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 to the extent that the issuer or nominated person honors or gives
  value for the presentation. (b) So 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
  in a document under subsection (a) of this section, the security interest continues
  and is subject to Article 9 of this title, but: (1) a security agreement is not necessary to make the security interest enforceable under
  subdivision 9—203(b)(3) of this title; (2) if the document is presented in a medium other than a written or other tangible medium,
  the security interest is perfected; and (3) if the document is presented in a written or other tangible medium and is not a certificated
  security, chattel paper, a document of title, an instrument, or a letter of credit,
  the security interest is perfected and has priority over a conflicting security interest
  in the document so long as the debtor does not have possession of the document. (Added 1999, No. 106 (Adj. Sess.), § 15, eff. July 1, 2001.)