(a) A confirmer is directly obligated on a letter of credit and has the rights and
obligations of an issuer to the extent of its confirmation. The confirmer also has rights against and obligations to the issuer as if the issuer
were an applicant and the confirmer had issued the letter of credit at the request
and for the account of the issuer.
(b) A nominated person who is not a confirmer is not obligated to honor or otherwise
give value for a presentation.
(c) A person requested to advise may decline to act as an adviser. An adviser who is not a confirmer is not obligated to honor or give value for a presentation.
An adviser undertakes to the issuer and the beneficiary accurately to advise the terms
of the letter of credit, confirmation, amendment, or advice received by that person
and undertakes to the beneficiary to check the apparent authenticity of the request
to advise. Even if the advice is inaccurate, the letter of credit, confirmation, or amendment
is enforceable as issued.
(d) A person who notifies a transferee beneficiary of the terms of a letter of credit,
confirmation, amendment, or advice has the rights and obligations of an adviser under
subsection (c). The terms in the notice to the transferee beneficiary may differ from the terms in
any notice to the transferor beneficiary to the extent permitted by the letter of
credit, confirmation, amendment, or advice received by the person who so notifies.
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
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