{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/8.5A-109.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/8.5A-109.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/8.5A-109.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/8.5A-109.html"}],"law_id":68535,"edition_id":1,"section_id":68535,"structure_id":14537,"section_number":"8.5A-109","catch_line":"Fraud and forgery","history":"1997, c. 343.","full_text":"a\n\nIf 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\n\nthe issuer shall honor the presentation, if honor is demanded by (i) a nominated person who has given value in good faith and without notice of forgery or material fraud, (ii) a confirmer who has honored its confirmation in good faith, (iii) a holder in due course of a draft drawn under the letter of credit which was taken after acceptance by the issuer or nominated person, or (iv) an assignee of the issuer’s or nominated person’s deferred obligation that was taken for value and without notice of forgery or material fraud after the obligation was incurred by the issuer or nominated person; and2\n\nthe issuer, acting in good faith, may honor or dishonor the presentation in any other case.b\n\nIf an applicant claims that a required document is forged or materially fraudulent or that honor of the presentation would facilitate a material fraud by the beneficiary on the issuer or applicant, a court of competent jurisdiction may temporarily or permanently enjoin the issuer from honoring a presentation or grant similar relief against the issuer or other persons only if the court finds that:1\n\nthe relief is not prohibited under the law applicable to an accepted draft or deferred obligation incurred by the issuer;2\n\na beneficiary, issuer, or nominated person who may be adversely affected is adequately protected against loss that it may suffer because the relief is granted;3\n\nall of the conditions to entitle a person to the relief under the law of this Commonwealth have been met; and4\n\non the basis of the information submitted to the court, the applicant is more likely than not to succeed under its claim of forgery or material fraud and the person demanding honor does not qualify for protection under subsection (a) (1).","order_by":null,"text":{"0":{"id":248085,"text":"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:","type":"section","prefixes":["a"],"prefix":"a","entire_prefix":"a","prefix_anchor":"a","level":1,"next_prefix":"a1"},"1":{"id":248086,"text":"the issuer shall honor the presentation, if honor is demanded by (i) a nominated person who has given value in good faith and without notice of forgery or material fraud, (ii) a confirmer who has honored its confirmation in good faith, (iii) a holder in due course of a draft drawn under the letter of credit which was taken after acceptance by the issuer or nominated person, or (iv) an assignee of the issuer’s or nominated person’s deferred obligation that was taken for value and without notice of forgery or material fraud after the obligation was incurred by the issuer or nominated person; and","type":"section","prefixes":["a","1"],"prefix":"1","entire_prefix":"a1","prefix_anchor":"a1","level":2,"prior_prefix":"a","next_prefix":"a2"},"2":{"id":248087,"text":"the issuer, acting in good faith, may honor or dishonor the presentation in any other case.","type":"section","prefixes":["a","2"],"prefix":"2","entire_prefix":"a2","prefix_anchor":"a2","level":2,"prior_prefix":"a1","next_prefix":"b"},"3":{"id":248088,"text":"If an applicant claims that a required document is forged or materially fraudulent or that honor of the presentation would facilitate a material fraud by the beneficiary on the issuer or applicant, a court of competent jurisdiction may temporarily or permanently enjoin the issuer from honoring a presentation or grant similar relief against the issuer or other persons only if the court finds that:","type":"section","prefixes":["b"],"prefix":"b","entire_prefix":"b","prefix_anchor":"b","level":1,"prior_prefix":"a2","next_prefix":"b1"},"4":{"id":248089,"text":"the relief is not prohibited under the law applicable to an accepted draft or deferred obligation incurred by the issuer;","type":"section","prefixes":["b","1"],"prefix":"1","entire_prefix":"b1","prefix_anchor":"b1","level":2,"prior_prefix":"b","next_prefix":"b2"},"5":{"id":248090,"text":"a beneficiary, issuer, or nominated person who may be adversely affected is adequately protected against loss that it may suffer because the relief is granted;","type":"section","prefixes":["b","2"],"prefix":"2","entire_prefix":"b2","prefix_anchor":"b2","level":2,"prior_prefix":"b1","next_prefix":"b3"},"6":{"id":248091,"text":"all of the conditions to entitle a person to the relief under the law of this Commonwealth have been met; and","type":"section","prefixes":["b","3"],"prefix":"3","entire_prefix":"b3","prefix_anchor":"b3","level":2,"prior_prefix":"b2","next_prefix":"b4"},"7":{"id":248092,"text":"on the basis of the information submitted to the court, the applicant is more likely than not to succeed under its claim of forgery or material fraud and the person demanding honor does not qualify for protection under subsection (a) (1).","type":"section","prefixes":["b","4"],"prefix":"4","entire_prefix":"b4","prefix_anchor":"b4","level":2,"prior_prefix":"b3"}},"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":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":""}},"next_section":{"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},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/8.5A-109\/","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":76210,"section_number":"8.2-512","catch_line":"Payment by buyer before inspection","order_by":null,"url":"\/8.2-512\/"},{"id":84859,"section_number":"8.5A-108","catch_line":"Issuer's rights and obligations","order_by":null,"url":"\/8.5A-108\/"},{"id":86292,"section_number":"8.5A-110","catch_line":"Warranties","order_by":null,"url":"\/8.5A-110\/"}],"refers_to":false,"permalink":{"id":283385,"object_type":"law","relational_id":68535,"identifier":"8.5A-109","token":"8.5A\/8.5A-109","url":"\/8.5A-109\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/8.5A-109\/","token":"8.5A\/8.5A-109","dublin_core":{"Title":"Fraud and forgery","Type":"Text","Format":"text\/html","Identifier":"\u00a7 8.5A-109","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

a.<\/span> 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<\/span> fraud<\/span> by the beneficiary on the issuer or applicant: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> the issuer shall honor the presentation, if honor is demanded by (i) a nominated person who has given value in good faith and without notice of forgery<\/span> or material<\/span> fraud<\/span>, (ii) a confirmer who has honored its confirmation in good faith, (iii) a holder in due course of a draft drawn under the letter of credit which was taken after acceptance by the issuer or nominated person, or (iv) an assignee of the issuer’s or nominated person’s deferred obligation that was taken for value and without notice of forgery<\/span> or material<\/span> fraud<\/span> after the obligation was incurred by the issuer or nominated person; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> the issuer, acting in good faith, may honor or dishonor the presentation in any other case. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

b.<\/span> If an applicant claims that a required document is forged or materially fraudulent or that honor of the presentation would facilitate a material<\/span> fraud<\/span> by the beneficiary on the issuer or applicant, a court<\/span> of competent jurisdiction<\/span> may temporarily or permanently enjoin the issuer from honoring a presentation or grant similar relief against the issuer or other persons only if the court<\/span> finds that: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> the relief is not prohibited under the law<\/span> applicable to an accepted draft or deferred obligation incurred by the issuer; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> a beneficiary, issuer, or nominated person who may be adversely affected is adequately protected against loss that it may suffer because the relief is granted; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> all of the conditions to entitle a person to the relief under the law<\/span> of this Commonwealth have been met; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> on the basis of the information submitted to the court<\/span>, the applicant is more likely than not to succeed under its claim of forgery<\/span> or material<\/span> fraud<\/span> and the person demanding honor does not qualify for protection under subsection (a) (1). <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nFRAUD AND FORGERY (\u00a7 8.5A-109)\n\na. If a presentation is made that appears on its face strictly to comply with\nthe terms and conditions of the letter of credit, but a required document is\nforged or materially fraudulent, or honor of the presentation would facilitate a\nmaterial fraud by the beneficiary on the issuer or applicant:\n\n 1. the issuer shall honor the presentation, if honor is demanded by (i) a\n nominated person who has given value in good faith and without notice of\n forgery or material fraud, (ii) a confirmer who has honored its confirmation\n in good faith, (iii) a holder in due course of a draft drawn under the letter\n of credit which was taken after acceptance by the issuer or nominated person,\n or (iv) an assignee of the issuer’s or nominated person’s deferred\n obligation that was taken for value and without notice of forgery or material\n fraud after the obligation was incurred by the issuer or nominated person; and\n\n 2. the issuer, acting in good faith, may honor or dishonor the presentation in\n any other case.\n\nb. If an applicant claims that a required document is forged or materially\nfraudulent or that honor of the presentation would facilitate a material fraud\nby the beneficiary on the issuer or applicant, a court of competent jurisdiction\nmay temporarily or permanently enjoin the issuer from honoring a presentation or\ngrant similar relief against the issuer or other persons only if the court finds\nthat:\n\n 1. the relief is not prohibited under the law applicable to an accepted draft\n or deferred obligation incurred by the issuer;\n\n 2. a beneficiary, issuer, or nominated person who may be adversely affected is\n adequately protected against loss that it may suffer because the relief is\n granted;\n\n 3. all of the conditions to entitle a person to the relief under the law of\n this Commonwealth have been met; and\n\n 4. on the basis of the information submitted to the court, the applicant is\n more likely than not to succeed under its claim of forgery or material fraud\n and the person demanding honor does not qualify for protection under\n subsection (a) (1).\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}}