Sec. 42a-5-107. Confirmer, nominated person and adviser. - Connecticut Statutes

      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.