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Can you summarize IACO 554.5107?
UNIFORM COMMERCIAL CODE > Confirmer, nominated person, and adviser.
Short Summary
This legal document, governed by the Iowa Code under the Uniform Commercial Code, pertains to the roles and obligations of the confirmer, nominated person, and adviser in letter of credit transactions. 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. A nominated person who is not a confirmer is not obligated to honor or otherwise give value for a presentation. An adviser may decline to act as an adviser and is not obligated to honor or give value for a presentation unless they are also a confirmer. The adviser undertakes to accurately advise the terms of the letter of credit, confirmation, amendment, or advice received and checks the apparent authenticity of the request to advise. Even if the advice is inaccurate, the letter of credit, confirmation, or amendment remains enforceable. Additionally, 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. 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 received letter of credit, confirmation, amendment, or advice.
Whom does it apply to?
Parties involved in letter of credit transactions, including the confirmer, nominated person, and adviser
What does it govern?
Letter of credit and the roles and obligations of the confirmer, nominated person, and adviser
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Iowa