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Searching 2023-2024 Session

The Vermont Statutes Online

The Vermont Statutes Online have been updated to include the actions of the 2023 session of the General Assembly.

NOTE: The Vermont Statutes Online is an unofficial copy of the Vermont Statutes Annotated that is provided as a convenience.

Title 9A : Uniform Commercial Code

Article 005 : Letters of Credit

(Cite as: 9A V.S.A. § 5-103)
  • § 5—103. Scope

    (a) This article applies to letters of credit and to certain rights and obligations arising out of transactions involving letters of credit.

    (b) The statement of a rule in this article does not by itself require, imply, or negate application of the same or a different rule to a situation not provided for, or to a person not specified, in this article.

    (c) With the exception of this subsection, subsections (a) and (d) of this section, subdivisions 5—102(a)(9) and (10), subsection 5—106(d), and subsection 5—114(d) of this title, and except to the extent prohibited in section 1—302 and subsection 5—117(d) of this title, the effect of this article may be varied by agreement or by a provision stated or incorporated by reference in an undertaking. A term in an agreement or undertaking generally excusing liability or generally limiting remedies for failure to perform obligations is not sufficient to vary obligations prescribed by this article.

    (d) Rights and obligations of an issuer to a beneficiary or a nominated person under a letter of credit are independent of the existence, performance, or nonperformance of a contract or arrangement out of which the letter of credit arises or which underlies it, including contracts or arrangements between the issuer and the applicant and between the applicant and the beneficiary. (Added 1997, No. 65 (Adj. Sess.), § 1, eff. Jan. 1, 1999; amended 2007, No. 99 (Adj. Sess.), § 16.)