400.5-107. Confirmer, nominated person and adviser. - Missouri Statutes

Confirmer, nominated person and adviser.

400.5-107. (a) A confirmer is directly obligated on a letter ofcredit and has the rights and obligations of an issuer to the extent of itsconfirmation. The confirmer also has rights against and obligations to theissuer as if the issuer were an applicant and the confirmer had issued theletter of credit at the request and for the account of the issuer.

(b) A nominated person who is not a confirmer is not obligated tohonor 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 valuefor a presentation. An adviser undertakes to the issuer and to thebeneficiary accurately to advise the terms of the letter of credit,confirmation, amendment or advice received by that person and undertakes tothe beneficiary to check the apparent authenticity of the request toadvise. 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 aletter of credit, confirmation, amendment or advice has the rights andobligations of an adviser under subsection (c). The terms in the notice tothe transferee beneficiary may differ from the terms in any notice to thetransferor beneficiary to the extent permitted by the letter of credit,confirmation, amendment or advice received by the person who so notifies.

(L. 1963 p. 503 § 5-107, A.L. 1997 S.B. 6)