§ 5-107 — Confirmer, nominated person, and advisor

New York § 5-107

• Jurisdiction: New York
• Law UCC: Uniform Commercial Code
• Art. 5: Letters of Credit

Text

Section 5--107. Confirmer, nominated person, and advisor.\n (a) A confirmer is directly obligated on a letter of credit and has\nthe rights and obligations of an issuer to the extent of its\nconfirmation. The confirmer also has rights against and obligations to\nthe issuer as if the issuer were an applicant and the confirmer had\nissued the letter of credit at the request and for the account of the\nissuer.\n (b) A nominated person who is not a confirmer is not obligated to\nhonor or otherwise give value for a presentation.\n (c) A person requested to advise may decline to act as an adviser. An\nadviser that is not a confirmer is not obligated to honor or give value\nfor a presentation. An adviser undertakes to the issuer and to the\nbeneficiary accurately to advise the terms of the letter of credit,\nconfirmation, amendment, or advice received by that person and\nundertakes to the beneficiary to check the apparent authenticity of the\nrequest to advise. Even if the advice is inaccurate, the letter of\ncredit, confirmation, or amendment is enforceable as issued.\n (d) A person who notifies a transferee beneficiary of the terms of a\nletter of credit, confirmation, amendment, or advice has the rights and\nobligations of an adviser under subsection (c) of this section. The\nterms in the notice to the transferee beneficiary may differ from the\nterms in any notice to the transferor beneficiary to the extent\npermitted by the letter of credit, confirmation, amendment, or advice\nreceived by the person who so notifies.\n