                                 CODE OF VIRGINIA

DEFINITIONS (§ 8.5A-102)

a. In this title:

   1. &#8220;Adviser&#8221; 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. &#8220;Applicant&#8221; means a person at whose request or for whose
   account a letter of credit is issued. The term includes a person who requests
   an issuer to issue a letter of credit on behalf of another if the person
   making the request undertakes an obligation to reimburse the issuer.

   3. &#8220;Beneficiary&#8221; means a person who under the terms of a letter of
   credit is entitled to have its complying presentation honored. The term
   includes a person to whom drawing rights have been transferred under a
   transferable letter of credit.

   4. &#8220;Confirmer&#8221; means a nominated person who undertakes, at the
   request or with the consent of the issuer, to honor a presentation under a
   letter of credit issued by another.

   5. &#8220;Dishonor&#8221; of a letter of credit means failure timely to honor
   or to take an interim action, such as acceptance of a draft, that may be
   required by the letter of credit.

   6. &#8220;Document&#8221; means a draft or other demand, document of title,
   investment security, certificate, invoice, or other record, statement, or
   representation of fact, law, right, or opinion (i) which is presented in a
   written or other medium permitted by the letter of credit or, unless
   prohibited by the letter of credit, by the standard practice referred to in
   &#xA7; 8.5A-108(e) and (ii) which is capable of being examined for compliance
   with the terms and conditions of the letter of credit. A document may not be
   oral.

   7. &#8220;Good faith&#8221; means honesty in fact in the conduct or
   transaction concerned.

   8. &#8220;Honor&#8221; of a letter of credit means performance of the
   issuer&#8217;s undertaking in the letter of credit to pay or deliver an item
   of value. Unless the letter of credit otherwise provides, &#8220;honor&#8221;
   occurs:

i. upon payment;

   ii. if the letter of credit provides for acceptance, upon acceptance of a
   draft and, at maturity, its payment; or

   iii. if the letter of credit provides for incurring a deferred obligation,
   upon incurring the obligation and, at maturity, its performance.

   9. &#8220;Issuer&#8221; means a bank or other person that issues a letter of
   credit, but does not include an individual who makes an engagement for
   personal, family, or household purposes.

   10. &#8220;Letter of credit&#8221; means a definite undertaking that satisfies
   the requirements of &#xA7; 8.5A-104 by an issuer to a beneficiary at the
   request or for the account of an applicant or, in the case of a financial
   institution, to itself or for its own account, to honor a documentary
   presentation by payment or delivery of an item of value.

   11. &#8220;Nominated person&#8221; means a person whom the issuer (i)
   designates or authorizes to pay, accept, negotiate, or otherwise give value
   under a letter of credit and (ii) undertakes by agreement or custom and
   practice to reimburse.

   12. &#8220;Presentation&#8221; means delivery of a document to an issuer or
   nominated person for honor or giving of value under a letter of credit.

   13. &#8220;Presenter&#8221; means a person making a presentation as or on
   behalf of a beneficiary or nominated person.

   14. &#8220;Record&#8221; means information that is inscribed on a tangible
   medium, or that is stored in an electronic or other medium and is retrievable
   in perceivable form.

   15. &#8220;Successor of a beneficiary&#8221; means a person who succeeds to
   substantially all of the rights of a beneficiary by operation of law,
   including a corporation with or into which the beneficiary has been merged or
   consolidated, an administrator, executor, personal representative, trustee in
   bankruptcy, debtor in possession, liquidator, and receiver.

b. Definitions in other titles applying to this title and the sections in which
they appear are:
			&#8220;Accept&#8221; or &#8220;Acceptance&#8221; &#8212; &#xA7; 8.3A-409.
			&#8220;Value&#8221; &#8212; &#xA7;&#xA7; 8.3A-303 and 8.4A-211.

c. Title 8.1A contains certain additional general definitions and principles of
construction and interpretation applicable throughout this title.

HISTORY: 1997, c. 343; 2003, c. 353.