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Can you summarize VACV 8.5A-108?
Uniform Commercial Code Letters of Credit > Issuer's rights and obligations
Short Summary
This legal document governs the rights and obligations of issuers of letters of credit. It specifies that an issuer must honor a presentation that strictly complies with the terms and conditions of the letter of credit, unless otherwise agreed with the applicant. The issuer has a reasonable time to honor the presentation, accept a draft, or give notice of discrepancies. The issuer is precluded from asserting any discrepancy if timely notice is not given. The document also states that the issuer is not responsible for the performance or nonperformance of the underlying contract, acts or omissions of others, or observance of trade usage other than the standard practice. If a letter of credit contains nondocumentary conditions, the issuer must disregard them. If a presentation is dishonored, the issuer must return the documents or hold them at the presenter’s disposal. If a presentation is honored, the issuer is entitled to reimbursement from the applicant, takes the documents free of claims, and is discharged from its performance under the letter of credit. However, if a required beneficiary’s signature was forged, the issuer is not discharged. The document does not mention specific exemptions or penalties for non-compliance.
Whom does it apply to?
Issuers of letters of credit
What does it govern?
Issuer's rights and obligations regarding letters of credit
What are exemptions?
Exemptions are not mentioned in the provided content.
What are the Penalties?
Penalties for non-compliance are not mentioned in the provided content.
Jurisdiction
Virginia