Uniform Commercial Code
U.C.C. - ARTICLE 5
LETTERS OF CREDIT
§ 5-107. Advice of Credit; Confirmation; Error in Statement of Terms.
(1) Unless otherwise specified an advising
bank by advising a credit issued
by another bank does not assume any obligation to honor drafts drawn or demands
for payment made under the credit but it does assume obligation for the accuracy
of its own statement.
(2) A confirming
bank by confirming a credit becomes
directly obligated on the credit to the extent of its confirmation as though
it were its issuer and acquires the rights
of an issuer.
(3) Even though an advising
bank incorrectly advises the terms of a credit it
has been authorized to advise the credit is established as against the issuer to
the extent of its original terms.
(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.
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