§ 25-5-107. Confirmer, nominated person, and adviser. - North Carolina Statutes

§25‑5‑107.  Confirmer, nominated person, and adviser.

(a)        A confirmer isdirectly obligated on a letter of credit and has the rights and obligations ofan issuer to the extent of its confirmation. The confirmer also has rightsagainst and obligations to the issuer as if the issuer were an applicant, andthe confirmer had issued the letter of credit at the request and for theaccount of the issuer.

(b)        A nominated personwho is not a confirmer is not obligated to honor or otherwise give value for apresentation.

(c)        A person requestedto advise may decline to act as an adviser. An adviser that is not a confirmeris not obligated to honor or give value for a presentation. An adviserundertakes to the issuer and to the beneficiary accurately to advise the termsof the letter of credit, confirmation, amendment, or advice received by thatperson and undertakes to the beneficiary to check the apparent authenticity ofthe request to advise. Even if the advice is inaccurate, the letter of credit,confirmation, or amendment is enforceable as issued.

(d)        A person whonotifies a transferee beneficiary of the terms of a letter of credit,confirmation, amendment, or advice has the rights and obligations of an adviserunder subsection (c) of this section. The terms in the notice to the transfereebeneficiary may differ from the terms in any notice to the transferorbeneficiary to the extent permitted by the letter of credit, confirmation,amendment, or advice received by the person who so notifies. (1999‑73,s. 1.)