Home Table of Contents

§ 5-105. Consideration

West's Annotated Code of MarylandCommercial Law

West's Annotated Code of Maryland
Commercial Law
Title 5. Letters of Credit (Refs & Annos)
MD Code, Commercial Law, § 5-105
§ 5-105. Consideration
Consideration is not required to issue, amend, transfer, or cancel a letter of credit, advice, or confirmation.

Credits

Added by Acts 1997, c. 652, § 2, eff. Oct. 1, 1997.

Editors' Notes

UNIFORM COMMERCIAL CODE COMMENT
It is not to be expected that any issuer will issue its letter of credit without some form of remuneration. But it is not expected that the beneficiary will know what the issuer's remuneration was or whether in fact there was any identifiable remuneration in a given case. And it might be difficult for the beneficiary to prove the issuer's remuneration. This section dispenses with this proof and is consistent with the position of Lord Mansfield in Pillans v. Van Mierop, 97 Eng.Rep. 1035 (K.B. 1765) in making consideration irrelevant.
HISTORICAL AND STATUTORY NOTES
1997 Legislation
For application provisions of Acts 1997, c. 652, §§ 3 and 4, see Historical and Statutory Notes following Commercial Law § 5-101.
MD Code, Commercial Law, § 5-105, MD COML § 5-105
Current through legislation effective May 13, 2019, from the 2019 Regular Session of the General Assembly.
End of Document© 2019 Thomson Reuters. No claim to original U.S. Government Works.