{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/8.5A-117.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/8.5A-117.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/8.5A-117.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/8.5A-117.html"}],"law_id":61433,"edition_id":1,"section_id":61433,"structure_id":14537,"section_number":"8.5A-117","catch_line":"Subrogation of issuer, applicant, and nominated person","history":"1997, c. 343.","full_text":"a\n\nAn 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 obligation owed to the applicant.b\n\nAn applicant that reimburses an issuer is subrogated to the rights of the issuer against any beneficiary, presenter, or nominated person to the same extent as if the applicant were the secondary obligor of the obligations owed to the issuer and has the rights of subrogation of the issuer to the rights of the beneficiary stated in subsection (a).c\n\nA nominated person who pays or gives value against a draft or demand presented under a letter of credit is subrogated to the rights of:1\n\nthe issuer against the applicant to the same extent as if the nominated person were a secondary obligor of the obligation owed to the issuer by the applicant;2\n\nthe beneficiary to the same extent as if the nominated person were a secondary obligor of the underlying obligation owed to the beneficiary; and3\n\nthe applicant to same extent as if the nominated person were a secondary obligor of the underlying obligation owed to the applicant.d\n\nNotwithstanding any agreement or term to the contrary, the rights of subrogation stated in subsections (a) and (b) do not arise until the issuer honors the letter of credit or otherwise pays, and the rights in subsection (c) do not arise until the nominated person pays or otherwise gives value. Until then, the issuer, nominated person, and the applicant do not derive under this section present or prospective rights forming the basis of a claim, defense, or excuse.","order_by":null,"text":{"0":{"id":224429,"text":"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 obligation owed to the applicant.","type":"section","prefixes":["a"],"prefix":"a","entire_prefix":"a","prefix_anchor":"a","level":1,"next_prefix":"b"},"1":{"id":224430,"text":"An applicant that reimburses an issuer is subrogated to the rights of the issuer against any beneficiary, presenter, or nominated person to the same extent as if the applicant were the secondary obligor of the obligations owed to the issuer and has the rights of subrogation of the issuer to the rights of the beneficiary stated in subsection (a).","type":"section","prefixes":["b"],"prefix":"b","entire_prefix":"b","prefix_anchor":"b","level":1,"prior_prefix":"a","next_prefix":"c"},"2":{"id":224431,"text":"A nominated person who pays or gives value against a draft or demand presented under a letter of credit is subrogated to the rights of:","type":"section","prefixes":["c"],"prefix":"c","entire_prefix":"c","prefix_anchor":"c","level":1,"prior_prefix":"b","next_prefix":"c1"},"3":{"id":224432,"text":"the issuer against the applicant to the same extent as if the nominated person were a secondary obligor of the obligation owed to the issuer by the applicant;","type":"section","prefixes":["c","1"],"prefix":"1","entire_prefix":"c1","prefix_anchor":"c1","level":2,"prior_prefix":"c","next_prefix":"c2"},"4":{"id":224433,"text":"the beneficiary to the same extent as if the nominated person were a secondary obligor of the underlying obligation owed to the beneficiary; and","type":"section","prefixes":["c","2"],"prefix":"2","entire_prefix":"c2","prefix_anchor":"c2","level":2,"prior_prefix":"c1","next_prefix":"c3"},"5":{"id":224434,"text":"the applicant to same extent as if the nominated person were a secondary obligor of the underlying obligation owed to the applicant.","type":"section","prefixes":["c","3"],"prefix":"3","entire_prefix":"c3","prefix_anchor":"c3","level":2,"prior_prefix":"c2","next_prefix":"d"},"6":{"id":224435,"text":"Notwithstanding any agreement or term to the contrary, the rights of subrogation stated in subsections (a) and (b) do not arise until the issuer honors the letter of credit or otherwise pays, and the rights in subsection (c) do not arise until the nominated person pays or otherwise gives value. Until then, the issuer, nominated person, and the applicant do not derive under this section present or prospective rights forming the basis of a claim, defense, or excuse.","type":"section","prefixes":["d"],"prefix":"d","entire_prefix":"d","prefix_anchor":"d","level":1,"prior_prefix":"c3"}},"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":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},"next_section":{"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},"metadata":{"court_decisions":""},"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/8.5A-117\/","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":59884,"section_number":"8.5A-103","catch_line":"Scope","order_by":null,"url":"\/8.5A-103\/"},{"id":84859,"section_number":"8.5A-108","catch_line":"Issuer's rights and obligations","order_by":null,"url":"\/8.5A-108\/"}],"refers_to":false,"permalink":{"id":283417,"object_type":"law","relational_id":61433,"identifier":"8.5A-117","token":"8.5A\/8.5A-117","url":"\/8.5A-117\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/8.5A-117\/","token":"8.5A\/8.5A-117","dublin_core":{"Title":"Subrogation of issuer, applicant, and nominated person","Type":"Text","Format":"text\/html","Identifier":"\u00a7 8.5A-117","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

a.<\/span> 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 obligation owed to the applicant. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

b.<\/span> An applicant that reimburses an issuer is subrogated to the rights of the issuer against any beneficiary, presenter, or nominated person to the same extent as if the applicant were the secondary obligor of the obligations owed to the issuer and has the rights of subrogation of the issuer to the rights of the beneficiary stated in subsection (a). <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

c.<\/span> A nominated person who pays or gives value against a draft or demand presented under a letter of credit is subrogated to the rights of: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> the issuer against the applicant to the same extent as if the nominated person were a secondary obligor of the obligation owed to the issuer by the applicant; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> the beneficiary to the same extent as if the nominated person were a secondary obligor of the underlying obligation owed to the beneficiary; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> the applicant to same extent as if the nominated person were a secondary obligor of the underlying obligation owed to the applicant. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

d.<\/span> Notwithstanding any agreement or term to the contrary, the rights of subrogation stated in subsections (a) and (b) do not arise until the issuer honors the letter of credit or otherwise pays, and the rights in subsection (c) do not arise until the nominated person pays or otherwise gives value. Until then, the issuer, nominated person, and the applicant do not derive under this section present or prospective rights forming the basis of a claim, defense, or excuse. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nSUBROGATION OF ISSUER, APPLICANT, AND NOMINATED PERSON (\u00a7 8.5A-117)\n\na. An issuer that honors a beneficiary’s presentation is subrogated to the\nrights of the beneficiary to the same extent as if the issuer were a secondary\nobligor of the underlying obligation owed to the beneficiary and of the\napplicant to the same extent as if the issuer were the secondary obligor of the\nunderlying obligation owed to the applicant.\n\nb. An applicant that reimburses an issuer is subrogated to the rights of the\nissuer against any beneficiary, presenter, or nominated person to the same\nextent as if the applicant were the secondary obligor of the obligations owed to\nthe issuer and has the rights of subrogation of the issuer to the rights of the\nbeneficiary stated in subsection (a).\n\nc. A nominated person who pays or gives value against a draft or demand\npresented under a letter of credit is subrogated to the rights of:\n\n 1. the issuer against the applicant to the same extent as if the nominated\n person were a secondary obligor of the obligation owed to the issuer by the\n applicant;\n\n 2. the beneficiary to the same extent as if the nominated person were a\n secondary obligor of the underlying obligation owed to the beneficiary; and\n\n 3. the applicant to same extent as if the nominated person were a secondary\n obligor of the underlying obligation owed to the applicant.\n\nd. Notwithstanding any agreement or term to the contrary, the rights of\nsubrogation stated in subsections (a) and (b) do not arise until the issuer\nhonors the letter of credit or otherwise pays, and the rights in subsection (c)\ndo not arise until the nominated person pays or otherwise gives value. Until\nthen, the issuer, nominated person, and the applicant do not derive under this\nsection present or prospective rights forming the basis of a claim, defense, or\nexcuse.\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}}