                                 CODE OF VIRGINIA

SECURITY INTEREST OF ISSUER OR NOMINATED PERSON (§ 8.5A-117.1)

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), the security interest
continues and is subject to Title 8.9A, but:

   1. a security agreement is not necessary to make the security interest
   enforceable under subdivision (b) (3) of &#xA7; 8.9A-203;

   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.

HISTORY: 2000, c. 1007.