Ch. 652

1997 LAWS OF MARYLAND

5-105. CONSIDERATION.

CONSIDERATION IS NOT REQUIRED TO ISSUE, AMEND, TRANSFER, OR CANCEL
A LETTER OF CREDIT, ADVICE, OR CONFIRMATION.

5-106. ISSUANCE, AMENDMENT, CANCELLATION, AND DURATION.

(A)     A LETTER OF CREDIT IS ISSUED AND BECOMES ENFORCEABLE
ACCORDING TO ITS TERMS AGAINST THE ISSUER WHEN THE ISSUER SENDS OR
OTHERWISE TRANSMITS IT TO THE PERSON REQUESTED TO ADVISE OR TO THE
BENEFICIARY. A LETTER OF CREDIT IS REVOCABLE ONLY IF IT SO PROVIDES.

(B)     AFTER A LETTER OF CREDIT IS ISSUED, RIGHTS AND OBLIGATIONS OF A
BENEFICIARY, APPLICANT, CONFIRMER, AND ISSUER ARE NOT AFFECTED BY AN
AMENDMENT OR CANCELLATION TO WHICH THAT PERSON HAS NOT CONSENTED
EXCEPT TO THE EXTENT THE LETTER OF CREDIT PROVIDES THAT IT IS REVOCABLE
OR THAT THE ISSUER MAY AMEND OR CANCEL THE LETTER OF CREDIT WITHOUT
THAT CONSENT.

(C)     IF THERE IS NO STATED EXPIRATION DATE OR OTHER PROVISION THAT
DETERMINES ITS DURATION, A LETTER OF CREDIT EXPIRES 1 YEAR AFTER ITS
STATED DATE OF ISSUANCE OR, IF NONE IS STATED, AFTER THE DATE ON WHICH IT
IS ISSUED.

(D)     A LETTER OF CREDIT THAT STATES THAT IT IS PERPETUAL EXPIRES 5
YEARS AFTER ITS STATED DATE OF ISSUANCE, OR IF NONE IS STATED, AFTER THE
DATE ON WHICH IT IS ISSUED.

5-107. CONFIRMER, NOMINATED PERSON, AND ADVISER.

(A)     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.

(B)     A NOMINATED PERSON WHO IS NOT A CONFIRMER IS NOT OBLIGATED TO
HONOR OR OTHERWISE GIVE VALUE FOR A PRESENTATION.

(C)     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.

(D)     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

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