§ 6A-5-107 - Confirmer, nominated person, and adviser. - Rhode Island Statutes

SECTION 6A-5-107

   § 6A-5-107  Confirmer, nominated person,and adviser. – (a) A confirmer is directly obligated on a letter of credit and has the rightsand obligations of an issuer to the extent of its confirmation. The confirmeralso has rights against and obligations to the issuer as if the issuer were anapplicant and the confirmer had issued the letter of credit at the request andfor the account of the issuer.

   (b) A nominated person who is not a confirmer is notobligated to honor or otherwise give value for a presentation.

   (c) A person requested to advise may decline to act as anadviser. An adviser that is not a confirmer is not obligated to honor or givevalue for 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 to advise.Even if the advice is inaccurate, the letter of credit, confirmation, oramendment is enforceable as issued.

   (d) A person who notifies a transferee beneficiary of theterms of a letter of credit, confirmation, amendment, or advice has the rightsand obligations 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.