§12A-5-117.

§12A-5-117.
   
   Subrogation of Issuer, Applicant, and Nominated Person.
   
   (a) An issuer that honors a beneficiary's presentation is subrogated
   to the rights of the beneficiary to the same extent as if the issuer
   were a secondary obligor of the underlying obligation owed to the
   beneficiary and of the applicant to the same extent as if the issuer
   were the secondary obligor of the underlying obligation owed to the
   applicant.
   
   (b) An applicant that reimburses an issuer is subrogated to the rights
   of the issuer against any beneficiary, presenter, or nominated person
   to the same extent as if the applicant were the secondary obligor of
   the obligations owed to the issuer and has the rights of subrogation
   of the issuer to the rights of the beneficiary stated in subsection
   (a) of this section.
   
   (c) A nominated person who pays or gives value against a draft or
   demand presented under a letter of credit is subrogated to the rights
   of:
   
   (1) The issuer against the applicant to the same extent as if the
   nominated person were a secondary obligor of the obligation owed to
   the issuer by the applicant;
   
   (2) The beneficiary to the same extent as if the nominated person were
   a secondary obligor of the underlying obligation owed to the
   beneficiary; and
   
   (3) The applicant to the same extent as if the nominated person were a
   secondary obligor of the underlying obligation owed to the applicant.
   
   (d) Notwithstanding any agreement or term to the contrary, the rights
   of subrogation stated in subsections (a) and (b) of this section do
   not arise until the issuer honors the letter of credit or otherwise
   pays and the rights in subsection (c) of this section do not arise
   until the nominated person pays or otherwise gives value. Until then,
   the issuer, nominated person, and the applicant do not derive under
   this section present or prospective rights forming the basis of a
   claim, defense, or excuse.