{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/8.5A-111.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/8.5A-111.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/8.5A-111.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/8.5A-111.html"}],"law_id":80661,"edition_id":1,"section_id":80661,"structure_id":14537,"section_number":"8.5A-111","catch_line":"Remedies","history":"1997, c. 343.","full_text":"a\n\nIf 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 under the letter of credit is not for the payment of money, the claimant may obtain specific performance or, at the claimant’s election, recover an amount equal to the value of performance from the issuer. In either case, the claimant may also recover incidental but not consequential damages. The claimant is not obligated to take action to avoid damages that might be due from the issuer under this subsection. If, although not obligated to do so, the claimant avoids damages, the claimant’s recovery from the issuer must be reduced by the amount of damages avoided. The issuer has the burden of proving the amount of damages avoided. In the case of repudiation, the claimant need not present any document.b\n\nIf an issuer wrongfully dishonors a draft or demand presented under a letter of credit or honors a draft or demand in breach of its obligation to the applicant, the applicant may recover damages resulting from the breach, including incidental but not consequential damages, less any amount saved as a result of the breach.c\n\nIf an adviser or nominated person other than a confirmer breaches an obligation under this title or an issuer breaches an obligation not covered in subsection (a) or (b), a person to whom the obligation is owed may recover damages resulting from the breach, including incidental but not consequential damages, less any amount saved as a result of the breach. To the extent of the confirmation, a confirmer has the liability of an issuer specified in this subsection and subsections (a) and (b).d\n\nAn issuer, nominated person, or adviser who is found liable under subsection (a), (b), or (c) shall pay interest on the amount owed thereunder from the date of wrongful dishonor or other appropriate date.e\n\nReasonable attorney’s fees and other expenses of litigation must be awarded to the prevailing party in an action in which a remedy is sought under this title.f\n\nDamages that would otherwise be payable by a party for breach of an obligation under this title may be liquidated by agreement or undertaking, but only in an amount or by a formula that is reasonable in light of the harm anticipated.","order_by":null,"text":{"0":{"id":289094,"text":"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 under the letter of credit is not for the payment of money, the claimant may obtain specific performance or, at the claimant’s election, recover an amount equal to the value of performance from the issuer. In either case, the claimant may also recover incidental but not consequential damages. The claimant is not obligated to take action to avoid damages that might be due from the issuer under this subsection. If, although not obligated to do so, the claimant avoids damages, the claimant’s recovery from the issuer must be reduced by the amount of damages avoided. The issuer has the burden of proving the amount of damages avoided. In the case of repudiation, the claimant need not present any document.","type":"section","prefixes":["a"],"prefix":"a","entire_prefix":"a","prefix_anchor":"a","level":1,"next_prefix":"b"},"1":{"id":289095,"text":"If an issuer wrongfully dishonors a draft or demand presented under a letter of credit or honors a draft or demand in breach of its obligation to the applicant, the applicant may recover damages resulting from the breach, including incidental but not consequential damages, less any amount saved as a result of the breach.","type":"section","prefixes":["b"],"prefix":"b","entire_prefix":"b","prefix_anchor":"b","level":1,"prior_prefix":"a","next_prefix":"c"},"2":{"id":289096,"text":"If an adviser or nominated person other than a confirmer breaches an obligation under this title or an issuer breaches an obligation not covered in subsection (a) or (b), a person to whom the obligation is owed may recover damages resulting from the breach, including incidental but not consequential damages, less any amount saved as a result of the breach. To the extent of the confirmation, a confirmer has the liability of an issuer specified in this subsection and subsections (a) and (b).","type":"section","prefixes":["c"],"prefix":"c","entire_prefix":"c","prefix_anchor":"c","level":1,"prior_prefix":"b","next_prefix":"d"},"3":{"id":289097,"text":"An issuer, nominated person, or adviser who is found liable under subsection (a), (b), or (c) shall pay interest on the amount owed thereunder from the date of wrongful dishonor or other appropriate date.","type":"section","prefixes":["d"],"prefix":"d","entire_prefix":"d","prefix_anchor":"d","level":1,"prior_prefix":"c","next_prefix":"e"},"4":{"id":289098,"text":"Reasonable attorney’s fees and other expenses of litigation must be awarded to the prevailing party in an action in which a remedy is sought under this title.","type":"section","prefixes":["e"],"prefix":"e","entire_prefix":"e","prefix_anchor":"e","level":1,"prior_prefix":"d","next_prefix":"f"},"5":{"id":289099,"text":"Damages that would otherwise be payable by a party for breach of an obligation under this title may be liquidated by agreement or undertaking, but only in an amount or by a formula that is reasonable in light of the harm anticipated.","type":"section","prefixes":["f"],"prefix":"f","entire_prefix":"f","prefix_anchor":"f","level":1,"prior_prefix":"e"}},"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 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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":false,"refers_to":false,"permalink":{"id":283393,"object_type":"law","relational_id":80661,"identifier":"8.5A-111","token":"8.5A\/8.5A-111","url":"\/8.5A-111\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/8.5A-111\/","token":"8.5A\/8.5A-111","dublin_core":{"Title":"Remedies","Type":"Text","Format":"text\/html","Identifier":"\u00a7 8.5A-111","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

a.<\/span> 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 under the letter of credit is not for the payment of money, the claimant may obtain specific performance or, at the claimant’s election, recover an amount equal to the value of performance from the issuer. In either case, the claimant may also recover incidental but not consequential damages<\/span>. The claimant is not obligated to take action to avoid damages<\/span> that might be due from the issuer under this subsection. If, although not obligated to do so, the claimant avoids damages<\/span>, the claimant’s recovery from the issuer must be reduced by the amount of damages<\/span> avoided. The issuer has the burden of proving the amount of damages<\/span> avoided. In the case of repudiation, the claimant need not present any document. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

b.<\/span> If an issuer wrongfully dishonors a draft or demand presented under a letter of credit or honors a draft or demand in breach of its obligation to the applicant, the applicant may recover damages<\/span> resulting from the breach, including incidental but not consequential damages<\/span>, less any amount saved as a result of the breach. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

c.<\/span> If an adviser or nominated person other than a confirmer breaches an obligation under this title or an issuer breaches an obligation not covered in subsection (a) or (b), a person to whom the obligation is owed may recover damages<\/span> resulting from the breach, including incidental but not consequential damages<\/span>, less any amount saved as a result of the breach. To the extent of the confirmation, a confirmer has the liability of an issuer specified in this subsection and subsections (a) and (b). <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

d.<\/span> An issuer, nominated person, or adviser who is found liable under subsection (a), (b), or (c) shall pay interest on the amount owed thereunder from the date of wrongful dishonor or other appropriate date. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

e.<\/span> Reasonable attorney’s fees and other expenses of litigation<\/span> must be awarded to the prevailing party<\/span> in an action in which a remedy is sought under this title. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

f.<\/span> Damages<\/span> that would otherwise be payable by a party<\/span> for breach of an obligation under this title may be liquidated by agreement or undertaking, but only in an amount or by a formula that is reasonable in light of the harm anticipated. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nREMEDIES (\u00a7 8.5A-111)\n\na. If an issuer wrongfully dishonors or repudiates its obligation to pay money\nunder a letter of credit before presentation, the beneficiary, successor, or\nnominated person presenting on its own behalf may recover from the issuer the\namount that is the subject of the dishonor or repudiation. If the issuer’s\nobligation under the letter of credit is not for the payment of money, the\nclaimant may obtain specific performance or, at the claimant’s election,\nrecover an amount equal to the value of performance from the issuer. In either\ncase, the claimant may also recover incidental but not consequential damages.\nThe claimant is not obligated to take action to avoid damages that might be due\nfrom the issuer under this subsection. If, although not obligated to do so, the\nclaimant avoids damages, the claimant’s recovery from the issuer must be\nreduced by the amount of damages avoided. The issuer has the burden of proving\nthe amount of damages avoided. In the case of repudiation, the claimant need not\npresent any document.\n\nb. If an issuer wrongfully dishonors a draft or demand presented under a letter\nof credit or honors a draft or demand in breach of its obligation to the\napplicant, the applicant may recover damages resulting from the breach,\nincluding incidental but not consequential damages, less any amount saved as a\nresult of the breach.\n\nc. If an adviser or nominated person other than a confirmer breaches an\nobligation under this title or an issuer breaches an obligation not covered in\nsubsection (a) or (b), a person to whom the obligation is owed may recover\ndamages resulting from the breach, including incidental but not consequential\ndamages, less any amount saved as a result of the breach. To the extent of the\nconfirmation, a confirmer has the liability of an issuer specified in this\nsubsection and subsections (a) and (b).\n\nd. An issuer, nominated person, or adviser who is found liable under subsection\n(a), (b), or (c) shall pay interest on the amount owed thereunder from the date\nof wrongful dishonor or other appropriate date.\n\ne. Reasonable attorney’s fees and other expenses of litigation must be\nawarded to the prevailing party in an action in which a remedy is sought under\nthis title.\n\nf. Damages that would otherwise be payable by a party for breach of an\nobligation under this title may be liquidated by agreement or undertaking, but\nonly in an amount or by a formula that is reasonable in light of the harm\nanticipated.\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}}