§ 4-5-107 — Confirmer, nominated person, and adviser

Colorado § 4-5-107

• Jurisdiction: Colorado
• Title 04: Uniform
• Art.: Letters of Credit

Text

(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.

Legislative History

Source: L. 96: Entire article R&RE, p. 194, � 1, effective July 1.