{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/8.5A-108.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/8.5A-108.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/8.5A-108.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/8.5A-108.html"}],"law_id":84859,"edition_id":1,"section_id":84859,"structure_id":14537,"section_number":"8.5A-108","catch_line":"Issuer’s rights and obligations","history":"1997, c. 343.","full_text":"a\n\nExcept 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 agreed with the applicant, an issuer shall dishonor a presentation that does not appear so to comply.b\n\nAn issuer has a reasonable time after presentation, but not beyond the end of the seventh business day of the issuer after the day of its receipt of documents:1\n\nto honor;2\n\nif the letter of credit provides for honor to be completed more than seven business days after presentation, to accept a draft or incur a deferred obligation; or3\n\nto give notice to the presenter of discrepancies in the presentation.c\n\nExcept as otherwise provided in subsection (d), an issuer is precluded from asserting as a basis for dishonor any discrepancy if timely notice is not given, or any discrepancy not stated in the notice if timely notice is given.d\n\nFailure to give the notice specified in subsection (b) or to mention fraud, forgery, or expiration in the notice does not preclude the issuer from asserting as a basis for dishonor fraud or forgery as described in § 8.5A-109(a) or expiration of the letter of credit before presentation.e\n\nAn issuer shall observe standard practice of financial institutions that regularly issue letters of credit. Determination of the issuer’s observance of the standard practice is a matter of interpretation for the court. The court shall offer the parties a reasonable opportunity to present evidence of the standard practice.f\n\nAn issuer is not responsible for:1\n\nthe performance or nonperformance of the underlying contract, arrangement, or transaction;2\n\nan act or omission of others; or3\n\nobservance or knowledge of the usage of a particular trade other than the standard practice referred to in subsection (e).g\n\nIf an undertaking constituting a letter of credit under § 8.5A-102(a) (10) contains nondocumentary conditions, an issuer shall disregard the nondocumentary conditions and treat them as if they were not stated.h\n\nAn issuer that has dishonored a presentation shall return the documents or hold them at the disposal of, and send advice to that effect to, the presenter.i\n\nAn issuer that has honored a presentation as permitted or required by this title:1\n\nis entitled to be reimbursed by the applicant in immediately available funds not later than the date of its payment of funds;2\n\ntakes the documents free of claims of the beneficiary or presenter;3\n\nis precluded from asserting a right of recourse on a draft under §§ 8.3A-414 and 8.3A-415;4\n\nexcept as otherwise provided in §§ 8.5A-110 and 8.5A-117, is precluded from restitution of money paid or other value given by mistake to the extent the mistake concerns discrepancies in the documents or tender which are apparent on the face of the presentation; and5\n\nis discharged to the extent of its performance under the letter of credit unless the issuer honored a presentation in which a required signature of a beneficiary was forged.","order_by":null,"text":{"0":{"id":304007,"text":"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 agreed with the applicant, an issuer shall dishonor a presentation that does not appear so to comply.","type":"section","prefixes":["a"],"prefix":"a","entire_prefix":"a","prefix_anchor":"a","level":1,"next_prefix":"b"},"1":{"id":304008,"text":"An issuer has a reasonable time after presentation, but not beyond the end of the seventh business day of the issuer after the day of its receipt of documents:","type":"section","prefixes":["b"],"prefix":"b","entire_prefix":"b","prefix_anchor":"b","level":1,"prior_prefix":"a","next_prefix":"b1"},"2":{"id":304009,"text":"to honor;","type":"section","prefixes":["b","1"],"prefix":"1","entire_prefix":"b1","prefix_anchor":"b1","level":2,"prior_prefix":"b","next_prefix":"b2"},"3":{"id":304010,"text":"if the letter of credit provides for honor to be completed more than seven business days after presentation, to accept a draft or incur a deferred obligation; or","type":"section","prefixes":["b","2"],"prefix":"2","entire_prefix":"b2","prefix_anchor":"b2","level":2,"prior_prefix":"b1","next_prefix":"b3"},"4":{"id":304011,"text":"to give notice to the presenter of discrepancies in the presentation.","type":"section","prefixes":["b","3"],"prefix":"3","entire_prefix":"b3","prefix_anchor":"b3","level":2,"prior_prefix":"b2","next_prefix":"c"},"5":{"id":304012,"text":"Except as otherwise provided in subsection (d), an issuer is precluded from asserting as a basis for dishonor any discrepancy if timely notice is not given, or any discrepancy not stated in the notice if timely notice is given.","type":"section","prefixes":["c"],"prefix":"c","entire_prefix":"c","prefix_anchor":"c","level":1,"prior_prefix":"b3","next_prefix":"d"},"6":{"id":304013,"text":"Failure to give the notice specified in subsection (b) or to mention fraud, forgery, or expiration in the notice does not preclude the issuer from asserting as a basis for dishonor fraud or forgery as described in § 8.5A-109(a) or expiration of the letter of credit before presentation.","type":"section","prefixes":["d"],"prefix":"d","entire_prefix":"d","prefix_anchor":"d","level":1,"prior_prefix":"c","next_prefix":"e"},"7":{"id":304014,"text":"An issuer shall observe standard practice of financial institutions that regularly issue letters of credit. Determination of the issuer’s observance of the standard practice is a matter of interpretation for the court. The court shall offer the parties a reasonable opportunity to present evidence of the standard practice.","type":"section","prefixes":["e"],"prefix":"e","entire_prefix":"e","prefix_anchor":"e","level":1,"prior_prefix":"d","next_prefix":"f"},"8":{"id":304015,"text":"An issuer is not responsible for:","type":"section","prefixes":["f"],"prefix":"f","entire_prefix":"f","prefix_anchor":"f","level":1,"prior_prefix":"e","next_prefix":"f1"},"9":{"id":304016,"text":"the performance or nonperformance of the underlying contract, arrangement, or transaction;","type":"section","prefixes":["f","1"],"prefix":"1","entire_prefix":"f1","prefix_anchor":"f1","level":2,"prior_prefix":"f","next_prefix":"f2"},"10":{"id":304017,"text":"an act or omission of others; or","type":"section","prefixes":["f","2"],"prefix":"2","entire_prefix":"f2","prefix_anchor":"f2","level":2,"prior_prefix":"f1","next_prefix":"f3"},"11":{"id":304018,"text":"observance or knowledge of the usage of a particular trade other than the standard practice referred to in subsection (e).","type":"section","prefixes":["f","3"],"prefix":"3","entire_prefix":"f3","prefix_anchor":"f3","level":2,"prior_prefix":"f2","next_prefix":"g"},"12":{"id":304019,"text":"If an undertaking constituting a letter of credit under § 8.5A-102(a) (10) contains nondocumentary conditions, an issuer shall disregard the nondocumentary conditions and treat them as if they were not stated.","type":"section","prefixes":["g"],"prefix":"g","entire_prefix":"g","prefix_anchor":"g","level":1,"prior_prefix":"f3","next_prefix":"h"},"13":{"id":304020,"text":"An issuer that has dishonored a presentation shall return the documents or hold them at the disposal of, and send advice to that effect to, the presenter.","type":"section","prefixes":["h"],"prefix":"h","entire_prefix":"h","prefix_anchor":"h","level":1,"prior_prefix":"g","next_prefix":"i"},"14":{"id":304021,"text":"An issuer that has honored a presentation as permitted or required by this title:","type":"section","prefixes":["i"],"prefix":"i","entire_prefix":"i","prefix_anchor":"i","level":1,"prior_prefix":"h","next_prefix":"i1"},"15":{"id":304022,"text":"is entitled to be reimbursed by the applicant in immediately available funds not later than the date of its payment of funds;","type":"section","prefixes":["i","1"],"prefix":"1","entire_prefix":"i1","prefix_anchor":"i1","level":2,"prior_prefix":"i","next_prefix":"i2"},"16":{"id":304023,"text":"takes the documents free of claims of the beneficiary or presenter;","type":"section","prefixes":["i","2"],"prefix":"2","entire_prefix":"i2","prefix_anchor":"i2","level":2,"prior_prefix":"i1","next_prefix":"i3"},"17":{"id":304024,"text":"is precluded from asserting a right of recourse on a draft under §§ 8.3A-414 and 8.3A-415;","type":"section","prefixes":["i","3"],"prefix":"3","entire_prefix":"i3","prefix_anchor":"i3","level":2,"prior_prefix":"i2","next_prefix":"i4"},"18":{"id":304025,"text":"except as otherwise provided in §§ 8.5A-110 and 8.5A-117, is precluded from restitution of money paid or other value given by mistake to the extent the mistake concerns discrepancies in the documents or tender which are apparent on the face of the presentation; and","type":"section","prefixes":["i","4"],"prefix":"4","entire_prefix":"i4","prefix_anchor":"i4","level":2,"prior_prefix":"i3","next_prefix":"i5"},"19":{"id":304026,"text":"is discharged to the extent of its performance under the letter of credit unless the issuer honored a presentation in which a required signature of a beneficiary was forged.","type":"section","prefixes":["i","5"],"prefix":"5","entire_prefix":"i5","prefix_anchor":"i5","level":2,"prior_prefix":"i4"}},"ancestry":[{"id":14537,"edition_id":1,"name":"Uniform Commercial Code \u2014 Letters of Credit","identifier":"8.5A","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:48:34","date_modified":"2026-06-26 03:48:34","permalink":{"id":283351,"object_type":"structure","relational_id":14537,"identifier":"8.5A","token":"8.5A","url":"\/8.5A\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":68137,"structure_id":14537,"section_number":"8.5A-101","catch_line":"Short title","url":"\/8.5A-101\/","token":"8.5A\/8.5A-101","metadata":false},{"id":68166,"structure_id":14537,"section_number":"8.5A-102","catch_line":"Definitions","url":"\/8.5A-102\/","token":"8.5A\/8.5A-102","metadata":false},{"id":59884,"structure_id":14537,"section_number":"8.5A-103","catch_line":"Scope","url":"\/8.5A-103\/","token":"8.5A\/8.5A-103","metadata":false},{"id":62564,"structure_id":14537,"section_number":"8.5A-104","catch_line":"Formal requirements","url":"\/8.5A-104\/","token":"8.5A\/8.5A-104","metadata":false},{"id":78674,"structure_id":14537,"section_number":"8.5A-105","catch_line":"Consideration","url":"\/8.5A-105\/","token":"8.5A\/8.5A-105","metadata":{"court_decisions":""}},{"id":58998,"structure_id":14537,"section_number":"8.5A-106","catch_line":"Issuance, amendment, cancellation, and duration","url":"\/8.5A-106\/","token":"8.5A\/8.5A-106","metadata":false},{"id":78720,"structure_id":14537,"section_number":"8.5A-107","catch_line":"Confirmer, nominated person, and adviser","url":"\/8.5A-107\/","token":"8.5A\/8.5A-107","metadata":false},{"id":84859,"structure_id":14537,"section_number":"8.5A-108","catch_line":"Issuer's rights and obligations","url":"\/8.5A-108\/","token":"8.5A\/8.5A-108","metadata":{"court_decisions":""}},{"id":68535,"structure_id":14537,"section_number":"8.5A-109","catch_line":"Fraud and forgery","url":"\/8.5A-109\/","token":"8.5A\/8.5A-109","metadata":false},{"id":86292,"structure_id":14537,"section_number":"8.5A-110","catch_line":"Warranties","url":"\/8.5A-110\/","token":"8.5A\/8.5A-110","metadata":false},{"id":80661,"structure_id":14537,"section_number":"8.5A-111","catch_line":"Remedies","url":"\/8.5A-111\/","token":"8.5A\/8.5A-111","metadata":false},{"id":55987,"structure_id":14537,"section_number":"8.5A-112","catch_line":"Transfer of letter of credit","url":"\/8.5A-112\/","token":"8.5A\/8.5A-112","metadata":{"court_decisions":""}},{"id":63412,"structure_id":14537,"section_number":"8.5A-113","catch_line":"Transfer by operation of law","url":"\/8.5A-113\/","token":"8.5A\/8.5A-113","metadata":false},{"id":72104,"structure_id":14537,"section_number":"8.5A-114","catch_line":"Assignment of proceeds","url":"\/8.5A-114\/","token":"8.5A\/8.5A-114","metadata":false},{"id":66415,"structure_id":14537,"section_number":"8.5A-115","catch_line":"Statute of limitations","url":"\/8.5A-115\/","token":"8.5A\/8.5A-115","metadata":false},{"id":78841,"structure_id":14537,"section_number":"8.5A-116","catch_line":"Choice of law and forum","url":"\/8.5A-116\/","token":"8.5A\/8.5A-116","metadata":false},{"id":61433,"structure_id":14537,"section_number":"8.5A-117","catch_line":"Subrogation of issuer, applicant, and nominated person","url":"\/8.5A-117\/","token":"8.5A\/8.5A-117","metadata":{"court_decisions":""}},{"id":75081,"structure_id":14537,"section_number":"8.5A-117.1","catch_line":"Security interest of issuer or nominated person","url":"\/8.5A-117.1\/","token":"8.5A\/8.5A-117.1","metadata":false},{"id":65323,"structure_id":14537,"section_number":"8.5A-118","catch_line":"Applicability","url":"\/8.5A-118\/","token":"8.5A\/8.5A-118","metadata":false}],"previous_section":{"id":78720,"structure_id":14537,"section_number":"8.5A-107","catch_line":"Confirmer, nominated person, and adviser","url":"\/8.5A-107\/","token":"8.5A\/8.5A-107","metadata":false},"next_section":{"id":68535,"structure_id":14537,"section_number":"8.5A-109","catch_line":"Fraud and forgery","url":"\/8.5A-109\/","token":"8.5A\/8.5A-109","metadata":false},"metadata":{"court_decisions":""},"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/8.5A-108\/","history_text":"

This law was first created in 1997. The record of its establishment is cataloged in chapter 343<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year.<\/p>","references":[{"id":68166,"section_number":"8.5A-102","catch_line":"Definitions","order_by":null,"url":"\/8.5A-102\/"},{"id":55987,"section_number":"8.5A-112","catch_line":"Transfer of letter of credit","order_by":null,"url":"\/8.5A-112\/"},{"id":63412,"section_number":"8.5A-113","catch_line":"Transfer by operation of law","order_by":null,"url":"\/8.5A-113\/"}],"refers_to":[{"id":81363,"section_number":"8.3A-414","catch_line":"Obligation of drawer","order_by":null,"url":"\/8.3A-414\/"},{"id":78513,"section_number":"8.3A-415","catch_line":"Obligation of endorser","order_by":null,"url":"\/8.3A-415\/"},{"id":68166,"section_number":"8.5A-102","catch_line":"Definitions","order_by":null,"url":"\/8.5A-102\/"},{"id":68535,"section_number":"8.5A-109","catch_line":"Fraud and forgery","order_by":null,"url":"\/8.5A-109\/"},{"id":86292,"section_number":"8.5A-110","catch_line":"Warranties","order_by":null,"url":"\/8.5A-110\/"},{"id":63412,"section_number":"8.5A-113","catch_line":"Transfer by operation of law","order_by":null,"url":"\/8.5A-113\/"},{"id":61433,"section_number":"8.5A-117","catch_line":"Subrogation of issuer, applicant, and nominated person","order_by":null,"url":"\/8.5A-117\/"}],"permalink":{"id":283381,"object_type":"law","relational_id":84859,"identifier":"8.5A-108","token":"8.5A\/8.5A-108","url":"\/8.5A-108\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/8.5A-108\/","token":"8.5A\/8.5A-108","dublin_core":{"Title":"Issuer’s rights and obligations","Type":"Text","Format":"text\/html","Identifier":"\u00a7 8.5A-108","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

a.<\/span> Except as otherwise provided in § 8.5A-109<\/a>, 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<\/a> and unless otherwise agreed with the applicant, an issuer shall dishonor a presentation that does not appear so to comply. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

b.<\/span> An issuer has a reasonable time after presentation, but not beyond the end of the seventh business day of the issuer after the day of its receipt of documents: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> to honor; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> if the letter of credit provides for honor to be completed more than seven business days after presentation, to accept a draft or incur a deferred obligation; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> to give notice to the presenter of discrepancies in the presentation. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

c.<\/span> Except as otherwise provided in subsection (d), an issuer is precluded from asserting as a basis for dishonor any discrepancy if timely notice is not given, or any discrepancy not stated in the notice if timely notice is given. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

d.<\/span> Failure to give the notice specified in subsection (b) or to mention fraud<\/span>, forgery<\/span>, or expiration in the notice does not preclude the issuer from asserting as a basis for dishonor fraud<\/span> or forgery<\/span> as described in § 8.5A-109<\/a>(a) or expiration of the letter of credit before presentation. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

e.<\/span> An issuer shall observe standard practice of financial institutions that regularly issue<\/span> letters of credit. Determination of the issuer’s observance of the standard practice is a matter of interpretation for the court<\/span>. The court<\/span> shall offer the parties a reasonable opportunity to present evidence<\/span> of the standard practice. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

f.<\/span> An issuer is not responsible for: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> the performance or nonperformance of the underlying contract<\/span>, arrangement, or transaction; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> an act or omission of others; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> observance or knowledge of the usage of a particular trade other than the standard practice referred to in subsection (e). <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

g.<\/span> If an undertaking constituting a letter of credit under § 8.5A-102<\/a>(a) (10) contains nondocumentary conditions, an issuer shall disregard the nondocumentary conditions and treat them as if they were not stated. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

h.<\/span> An issuer that has dishonored a presentation shall return the documents or hold them at the disposal of, and send advice to that effect to, the presenter. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

i.<\/span> An issuer that has honored a presentation as permitted or required by this title: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> is entitled to be reimbursed by the applicant in immediately available funds not later than the date of its payment of funds; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> takes the documents free of claims of the beneficiary or presenter; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> is precluded from asserting a right of recourse on a draft under §§ 8.3A-414<\/a> and 8.3A-415<\/a>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> except as otherwise provided in §§ 8.5A-110<\/a> and 8.5A-117<\/a>, is precluded from restitution<\/span> of money paid or other value given by mistake to the extent the mistake concerns discrepancies in the documents or tender which are apparent on the face of the presentation; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> is discharged to the extent of its performance under the letter of credit unless the issuer honored a presentation in which a required signature of a beneficiary was forged. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nISSUER’S RIGHTS AND OBLIGATIONS (\u00a7 8.5A-108)\n\na. Except as otherwise provided in § 8.5A-109, an issuer shall honor a\npresentation that, as determined by the standard practice referred to in\nsubsection (e), appears on its face strictly to comply with the terms and\nconditions of the letter of credit. Except as otherwise provided in §\n8.5A-113 and unless otherwise agreed with the applicant, an issuer shall\ndishonor a presentation that does not appear so to comply.\n\nb. An issuer has a reasonable time after presentation, but not beyond the end of\nthe seventh business day of the issuer after the day of its receipt of\ndocuments:\n\n 1. to honor;\n\n 2. if the letter of credit provides for honor to be completed more than seven\n business days after presentation, to accept a draft or incur a deferred\n obligation; or\n\n 3. to give notice to the presenter of discrepancies in the presentation.\n\nc. Except as otherwise provided in subsection (d), an issuer is precluded from\nasserting as a basis for dishonor any discrepancy if timely notice is not given,\nor any discrepancy not stated in the notice if timely notice is given.\n\nd. Failure to give the notice specified in subsection (b) or to mention fraud,\nforgery, or expiration in the notice does not preclude the issuer from asserting\nas a basis for dishonor fraud or forgery as described in § 8.5A-109(a) or\nexpiration of the letter of credit before presentation.\n\ne. An issuer shall observe standard practice of financial institutions that\nregularly issue letters of credit. Determination of the issuer’s\nobservance of the standard practice is a matter of interpretation for the court.\nThe court shall offer the parties a reasonable opportunity to present evidence\nof the standard practice.\n\nf. An issuer is not responsible for:\n\n 1. the performance or nonperformance of the underlying contract, arrangement,\n or transaction;\n\n 2. an act or omission of others; or\n\n 3. observance or knowledge of the usage of a particular trade other than the\n standard practice referred to in subsection (e).\n\ng. If an undertaking constituting a letter of credit under § 8.5A-102(a)\n(10) contains nondocumentary conditions, an issuer shall disregard the\nnondocumentary conditions and treat them as if they were not stated.\n\nh. An issuer that has dishonored a presentation shall return the documents or\nhold them at the disposal of, and send advice to that effect to, the presenter.\n\ni. An issuer that has honored a presentation as permitted or required by this\ntitle:\n\n 1. is entitled to be reimbursed by the applicant in immediately available\n funds not later than the date of its payment of funds;\n\n 2. takes the documents free of claims of the beneficiary or presenter;\n\n 3. is precluded from asserting a right of recourse on a draft under\n §§ 8.3A-414 and 8.3A-415;\n\n 4. except as otherwise provided in §§ 8.5A-110 and 8.5A-117, is\n precluded from restitution of money paid or other value given by mistake to\n the extent the mistake concerns discrepancies in the documents or tender which\n are apparent on the face of the presentation; and\n\n 5. is discharged to the extent of its performance under the letter of credit\n unless the issuer honored a presentation in which a required signature of a\n beneficiary was forged.\n\nHISTORY: 1997, c. 343.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}