210

LAWS OF MARYLAND

[Ch. 49

(4) Unless otherwise specified the customer bears
as against the issuer all risks of transmission and
reasonable translation or interpretation of any message
relating to a credit.

5—108. "Rotation credit"; exhaustion of credit.

(1)    A credit which specifies that any person
purchasing or paying drafts drawn or demands for payment
made under it must note the amount of the draft or demand
on the letter or advice of credit is a "notation credit."

(2)   Under a notation credit

(a) A person paying the beneficiary or
purchasing a draft or demand for payment from him
acquires a right to honor only if the appropriate
notation is made and by transferring or forwarding for
honor the documents under the credit such a person
warrants to the issuer that the notation has been made;
and

(b) Unless the credit or a signed statement
that an appropriate notation has been made accompanies
the draft or demand for payment the issuer may delay
honor until evidence of notation has been procured which
is satisfactory to it but its obligation and that of its
customer continue for a reasonable time not exceeding
thirty days to obtain such evidence.

(3)   If the credit is not a notation credit

(a)   The issuer may honor complying drafts or
demands for payment presented to it in the order in which
they are presented and is discharged pro tanto by honor
of any such draft or demand;

(b)     As between competing good faith
purchasers of complying drafts or demands the person
first purchasing has priority over a subsequent purchaser
even though the later purchased draft or demand has been
first honored.

5—109. Issuer's obligation to its customer.

(1) An issuer's obligation to its customer includes
good faith and observance of any general banking usage
but unless otherwise agreed does not include liability or
responsibility

(a) For performance of the underlying
contract, for sale or other transaction between the
customer and the the beneficiary; or