The 2023 Florida Statutes (including Special Session C)

Title XXXIX
COMMERCIAL RELATIONS

Chapter 675
UNIFORM COMMERCIAL CODE: LETTERS OF CREDIT

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F.S. 675.109

675.109 Fraud and forgery.—

(1) 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:

(a) The issuer shall honor the presentation, if honor is demanded by:

1. A nominated person who has given value in good faith and without notice of forgery or material fraud;

2. A confirmer who has honored its confirmation in good faith;

3. 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

4. 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.

(b) The issuer, acting in good faith, may honor or dishonor the presentation in any other case.

(2) 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:

(a) The relief is not prohibited under the law applicable to an accepted draft or deferred obligation incurred by the issuer;

(b) 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;

(d) 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 paragraph (1)(a).

History.—s. 1, ch. 65-254; s. 1, ch. 99-137.

Note.—s. 5-109, U.C.C.

F.S. 675.109 on Google Scholar

F.S. 675.109 on Casetext

Amendments to 675.109

Arrestable Offenses / Crimes under Fla. Stat. 675.109

Level: Degree
Misdemeanor/Felony: First/Second/Third

Current data shows no reason an arrest or criminal charge should have occurred directly under Florida Statute 675.109.

Annotations, Discussions, Cases:

Cases from cite.case.law:

DEPENDABLE COMPONENT SUPPLY, INC. v. CARREFOUR INFORMATIQUE TREMBLANT, INC. LLC, LC. d. b. a., 572 F. App'x 796 (11th Cir. 2014)

. . . In upholding the award, this Court stated that “[b]ecause section 675.109’s letter-of-credit fraud was . . .

IRREVOCABLE TRUST FOR RICHARD C. HVIZDAK, a C. a RCH I, LP, a v. HUNTINGTON NATIONAL BANK, Co., 515 F. App'x 792 (11th Cir. 2013)

. . . Appellants’ initial complaint sought an injunction under section 675.109, and Appellants obtained a temporary . . . restraining order under section 675.109. . . . theory of liability throughout this litigation has been letter-of-credit fraud as defined by section 675.109 . . . Because section 675.109’s letter-of-credit fraud was the key legal theory underlying Appellants’ claims . . .

JAFFE, v. BANK OF AMERICA CORPORATION, N. A., 399 F. App'x 535 (11th Cir. 2010)

. . . . § 675.109(2). Under the plain language of Fla. . . .

JAFFE, v. BANK OF AMERICA, N. A., 674 F. Supp. 2d 1360 (S.D. Fla. 2009)

. . . paying ABC under the letter of credit, which is a remedy specifically authorized under Florida Statute 675.109 . . . Plaintiffs’ first complaint stated: “This is an action for injunctive relief pursuant to § 675.109(2) . . .

LENNAR HOMES, L. L. C. a v. V VENTURES, LLC, a a, 988 So. 2d 660 (Fla. Dist. Ct. App. 2008)

. . . default and seeks injunctive relief to enjoin the payment of the letter of credit pursuant to section 675.109 . . . the presentation would facilitate a material fraud by the beneficiary on the issuer or applicant.” § 675.109 . . . Lennar “is more likely than not to succeed under its claim of forgery or material fraud” under section 675.109 . . .

INTRINSIC VALUES CORPORATION, v. SUPERINTENDENCIA DE ADMINISTRACION TRIBUTARIA, PLC,, 806 So. 2d 616 (Fla. Dist. Ct. App. 2002)

. . . Subsequently, in Florida, Superinten-dencia brought an action pursuant to section 675.109(2), Florida . . . Section 675.109(2) provides: (2) If an applicant claims that a required document is forged or materially . . . The Uniform Commercial Code Comment to section 675.109 addresses the propriety of awarding an injunction . . . Under this scenario, section 675.109 contemplates the issuance of an injunction. . . .

JIM MACON BUILDING CONTRACTORS, INC. v. LAKE COUNTY,, 763 So. 2d 1223 (Fla. Dist. Ct. App. 2000)

. . . Intercontinental Bank, 466 So.2d 1130 (Fla. 3d DCA 1985); see also §§ 675.103(1)(a), 675.109, Fla. . . . Dade County, 371 So.2d 545, 548 (Fla. 3d DCA 1979); see also § 675.109(l)(a), Fla. . . . As a corollary to the independence rule, section 675.109(l)(b), Florida Statutes (1993), also provides . . . The reason for this rule is explained in a comment to section 5—109(l)(a) of the UCC and to section 675.109 . . . The provisions of section 675.109(l)(a), Florida Statutes (1993), are now found in section 675.108(6) . . .

CARGILL, INCORPORATED, v. SUNLIGHT FOODS, INCORPORATED,, 586 So. 2d 366 (Fla. Dist. Ct. App. 1991)

. . . .” § 675.109(l)(a), Fla.Stat. (1989). . . . . § 675.109(2), Fla.Stat. (1989). . . .

In AIR CONDITIONING, INC. OF STUART, LEASING SERVICE CORPORATION, v. E. WENDEL,, 72 B.R. 657 (S.D. Fla. 1987)

. . . . § 675.109. Pringle-Associated Mortgage Corp. v. . . .

BRAUN d b a v. INTERCONTINENTAL BANK,, 466 So. 2d 1130 (Fla. Dist. Ct. App. 1985)

. . . . § 675.109(l)(a), Fla.Stat. (1981). . . . See § 675.109(2), Fla.Stat. (1981). . . .

LEWIS STATE BANK, v. ADVANCE MORTGAGE CORPORATION, a, 362 So. 2d 406 (Fla. Dist. Ct. App. 1978)

. . . Section 675.109(2), F.S. (1977), requires the issuing bank to examine the documents with care in order . . .