Va. Code § 8.5A-101
Short title
This title may be cited as Uniform Commercial Code--Letters of Credit (1995).
Code of Virginia Title 8.5A — Uniform Commercial Code — Letters of Credit
Virginia · statute · Va. Code tit. 8.5A · 19 active provisions
Va. Code § 8.5A-102
Definitions
(a) In this title: (1) "Adviser" means a person who, at the request of the issuer, a confirmer, or another adviser, notifies or requests another adviser to notify the beneficiary that a letter of credit has been issued, confirmed, or amended. (2) "Applicant" means a person at whose request or for whose account a letter…
Va. Code § 8.5A-103
Scope
(a) This title applies to letters of credit and to certain rights and obligations arising out of transactions involving letters of credit. (b) The statement of a rule in this title does not by itself require, imply, or negate application of the same or a different rule to a situation not provided for, or to a person no…
Va. Code § 8.5A-104
Formal requirements
A letter of credit, confirmation, advice, transfer, amendment, or cancellation may be issued in any form that is a signed record.
Va. Code § 8.5A-105
Consideration
Consideration is not required to issue, amend, transfer, or cancel a letter of credit, advice, or confirmation.
Va. Code § 8.5A-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 obligatio…
Va. Code § 8.5A-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 t…
Va. Code § 8.5A-108
Issuer's rights and obligations
(a) Except as otherwise provided in § 8.5A-109 , an issuer shall honor a presentation that, as determined by the standard practice referred to in subsection (e), appears on its face strictly to comply with the terms and conditions of the letter of credit. Except as otherwise provided in § 8.5A-113 and unless otherwise…
Va. Code § 8.5A-109
Fraud and forgery
(a) If a presentation is made that appears on its face strictly to comply with the terms and conditions of the letter of credit, but a required document is forged or materially fraudulent, or honor of the presentation would facilitate a material fraud by the beneficiary on the issuer or applicant: (1) the issuer shall…
Va. Code § 8.5A-110
Warranties
(a) If its presentation is honored, the beneficiary warrants: (1) to the issuer, any other person to whom presentation is made, and the applicant that there is no fraud or forgery of the kind described in § 8.5A-109 (a); and (2) to the applicant that the drawing does not violate any agreement between the applicant and…
Va. Code § 8.5A-111
Remedies
(a) If an issuer wrongfully dishonors or repudiates its obligation to pay money under a letter of credit before presentation, the beneficiary, successor, or nominated person presenting on its own behalf may recover from the issuer the amount that is the subject of the dishonor or repudiation. If the issuer's obligation…
Va. Code § 8.5A-112
Transfer of letter of credit
(a) Except as otherwise provided in § 8.5A-113 , unless a letter of credit provides that it is transferable, the right of a beneficiary to draw or otherwise demand performance under a letter of credit may not be transferred. (b) Even if a letter of credit provides that it is transferable, the issuer may refuse to recog…
Va. Code § 8.5A-113
Transfer by operation of law
(a) A successor of a beneficiary may consent to amendments, sign and present documents, and receive payment or other items of value in the name of the beneficiary without disclosing its status as a successor. (b) A successor of a beneficiary may consent to amendments, sign and present documents, and receive payment or…
Va. Code § 8.5A-114
Assignment of proceeds
(a) In this section, "proceeds of a letter of credit" means the cash, check, accepted draft, or other item of value paid or delivered upon honor or giving of value by the issuer or any nominated person under the letter of credit. The term does not include a beneficiary's drawing rights or documents presented by the ben…
Va. Code § 8.5A-115
Statute of limitations
An action to enforce a right or obligation arising under this title must be commenced within one year after the expiration date of the relevant letter of credit or one year after the cause of action accrues, whichever occurs later. A cause of action accrues when the breach occurs, regardless of the aggrieved party's la…
Va. Code § 8.5A-116
Choice of law and forum
(a) The liability of an issuer, nominated person, or adviser for action or omission is governed by the law of the jurisdiction chosen by an agreement in the form of a record signed by the affected parties or by a provision in the person's letter of credit, confirmation, or other undertaking. The jurisdiction whose law…
Va. Code § 8.5A-117
Subrogation of issuer, applicant, and nominated person
(a) An issuer that honors a beneficiary's presentation is subrogated to the rights of the beneficiary to the same extent as if the issuer were a secondary obligor of the underlying obligation owed to the beneficiary and of the applicant to the same extent as if the issuer were the secondary obligor of the underlying ob…
Va. Code § 8.5A-117.1
Security interest of issuer or nominated person
(a) An issuer or nominated person has a security interest in a document presented under a letter of credit to the extent that the issuer or nominated person honors or gives value for the presentation. (b) So long as and to the extent that an issuer or nominated person has not been reimbursed or has not otherwise recove…
Va. Code § 8.5A-118
Applicability
This title applies to a letter of credit that is issued on or after January 1, 1998. This title does not apply to a transaction, event, obligation, or duty arising out of or associated with a letter of credit that was issued before January 1, 1998. A transaction arising out of or associated with a letter of credit that…