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2018 Georgia Code 11-5-107 | Car Wreck Lawyer

Link to State of Georgia Official Statute 2018 Georgia Code Annotated (sourced from legal.resource.org)
O.C.G.A. 11-5-107 Case Law from Google Scholar Amendments to OCGA 11-5-107

TITLE 11 COMMERCIAL CODE

Section 5. Letters of Credit, 11-5-101 through 11-5-118.

ARTICLE 5 LETTERS OF CREDIT

11-5-107. Confirmer, nominated person, and adviser.

  1. 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 of and for the account of the issuer.
  2. A nominated person who is not a confirmer is not obligated to honor or otherwise give value for a presentation.
  3. A person required 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 requirement to advise. Even if the advice is inaccurate, the letter of credit, confirmation, or amendment is enforceable as issued.
  4. 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 (c) of this Code 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.

(Code 1981, §11-5-107, enacted by Ga. L. 2002, p. 995, § 1.)

Law reviews.

- For annual survey article discussing letter of credit issues, see 46 Mercer L. Rev. 71 (1994).

JUDICIAL DECISIONS

Editor's notes.

- In light of the similarity of the provisions, decisions under former Article 5 are included in the annotations for this Code section.

A bank may confirm credit issued by nonbank, thus becoming primarily liable on it. Barclays Bank v. Mercantile Nat'l Bank, 481 F.2d 1224 (5th Cir. 1973), cert. dismissed, 414 U.S. 1139, 94 S. Ct. 888, 39 L. Ed. 2d 96 (1974).

Language precluding denial of purpose to act as a "confirming bank."

- See Barclays Bank D.C.O. v. Mercantile Nat'l Bank, 339 F. Supp. 457 (N.D. Ga. 1972), aff'd, 481 F.2d 1224 (5th Cir. 1973), cert. dismissed, 414 U.S. 1139, 94 S. Ct. 888, 39 L. Ed. 2d 96 (1974).

Cited in Dibrell Bros. Int'l v. Banca Nazionale Del Lavoro, 38 F.3d 1571 (11th Cir. 1994).

RESEARCH REFERENCES

Am. Jur. 2d.

- 50 Am. Jur. 2d, Letters of Credit and Credit Cards, §§ 80, 81.

U.L.A.

- Uniform Commercial Code (U.L.A.) § 5-107.

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