                                 CODE OF VIRGINIA

CONFIRMER, NOMINATED PERSON, AND ADVISER (§ 8.5A-107)

a. A confirmer is directly obligated on a letter of credit and has the rights
and obligations of an issuer to the extent of its confirmation. The confirmer
also has rights against and obligations to the issuer as if the issuer were an
applicant and the confirmer had issued the letter of credit at the request and
for the account of the issuer.

b. A nominated person who is not a confirmer is not obligated to honor or
otherwise give value for a presentation.

c. A person requested to advise may decline to act as an adviser. An adviser
that is not a confirmer is not obligated to honor or give value for a
presentation. An adviser undertakes to the issuer and to the beneficiary
accurately to advise the terms of the letter of credit, confirmation, amendment,
or advice received by that person and undertakes to the beneficiary to check the
apparent authenticity of the request to advise. Even if the advice is
inaccurate, the letter of credit, confirmation, or amendment is enforceable as
issued.

d. A person who notifies a transferee beneficiary of the terms of a letter of
credit, confirmation, amendment, or advice has the rights and obligations of an
adviser under subsection (c). The terms in the notice to the transferee
beneficiary may differ from the terms in any notice to the transferor
beneficiary to the extent permitted by the letter of credit, confirmation,
amendment, or advice received by the person who so notifies.

HISTORY: 1997, c. 343.