(810 ILCS 5/5-103)
(from Ch. 26, par. 5-103)
(a) This Article applies to letters of credit and to certain rights and
obligations arising out of transactions involving letters of credit.
(b) The statement of a rule in this Article does not by itself require,
imply, or negate application of the same or a different rule to a situation not
provided for, or to a person not specified, in this Article.
(c) With the exception of this subsection, subsections (a) and (d),
Sections 5-102(a)(9) and (10), 5-106(d), and 5-114(d), and except to the
extent prohibited in Sections 1-302
and 5-117(d), the effect of this Article
may be varied by agreement or by a provision stated or incorporated by
reference in an undertaking. A term in an agreement or undertaking
generally excusing liability or generally limiting remedies for failure to
perform obligations is not sufficient to vary obligations prescribed by this
(d) Rights and obligations of an issuer to a beneficiary or a
nominated person under a letter of credit are independent of the existence,
performance, or nonperformance of a contract or arrangement out of which
the letter of credit arises or which underlies it, including contracts or
arrangements between the issuer and the applicant and between the
applicant and the beneficiary.
(Source: P.A. 95-895, eff. 1-1-09.)