KRS 355.5-107: Confirmer, nominated person, and adviser.

(1) 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.

(2) A nominated person who is not a confirmer is not obligated to honor or otherwise

give value for a presentation.

(3) 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 advic e 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.

(4) 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 (3) of this section. The terms in the notice to the transferee

beneficiary may differ from the ter ms 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.