Independent Guarantees and Stand-by Letters of Credit

(1) Subject to subsection (3), the right of the beneficiary to demand honour of the UNDERTAKING ceases when: (a) the ISSUER has received a statement by the beneficiary of release from liability in a form referred to in section 6(2); (b) the beneficiary and the ISSUER have agreed on the termination of the UNDERTAKING in the form stipulated in the UNDERTAKING or, failing such stipulation, in a form. [...] (2) The UNDERTAKING may stipulate, or the ISSUER and the beneficiary may agree elsewhere, that return of the document embodying the UNDERTAKING to the ISSUER, or a procedure functionally equivalent to the return of the document in the case of the [2021-03-22 5:08:28. [...] (2) 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 (1). [...] (3) A nominated person who honours a draft or demand presented under an UNDERTAKING is subrogated to the rights of: (a) 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; (b) the beneficiary to the same extent as if the nominated person were a secondary obligor of the underlying obligation o. [...] That date is (i) the first day of the month following the expiration of one year after the date of deposit of Canada's instrument of accession, pursuant to Article 28(2); or (ii) in the case of a jurisdiction adopting implementing legislation after accession by Canada, the first day of the month following the expiration of six months after the date the declaration extending the application of the.