§ 41-05-07 — (5-107) Confirmer - Nominated person - Adviser

North Dakota § 41-05-07

• Jurisdiction: North Dakota
• Title 41: Uniform Commercial Code
• Ch. 41-05: Letters of Credit

Text

1. 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.
2. A nominated person who is not a confirmer is not obligated to honor or otherwise give
value for a presentation.
3. 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.
4. 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 3. 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.