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355.5-107 Confirmer, nominated person, and adviser.
(1)
(2)
(3)
(4)
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.
A nominated person who is not a confirmer is not obligated to honor or otherwise
give value for a presentation.
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.
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 (3) 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.
Effective: July 1, 2001
History: Repealed and reenacted 2000 Ky. Acts ch. 408, sec. 7, effective July 1, 2001. - Created 1958 Ky. Acts ch. 77, sec. 5-107, effective July 1, 1960.
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