Sec. 42a-5-107. Confirmer, nominated person and adviser.
Sec. 42a-5-107. Confirmer, nominated person and adviser. (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 that
is not a confirmer is not obligated to honor or give value for a presentation. An adviser
undertakes to the issuer and to 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) of this section. 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.
(1959, P.A. 133, S. 5-107; P.A. 96-198, S. 7.)
History: P.A. 96-198 substantially revised provisions re rights and obligations of a confirmer and of an adviser, deleted
provision re liability of the customer for risks of transmission and reasonable translation or interpretation of any message
relating to a letter of credit, added Subsec. (b) re obligation of a nominated person to honor or otherwise give value for
presentation and added Subsec. (d) re rights and obligations of a person who notifies a transferee beneficiary.
Cited. 173 C. 492.