Consideration is not required to issue, amend, transfer, or cancel a letter of credit, advice, or confirmation.
(Dec. 30, 1963, 77 Stat. 710, Pub. L. 88-243, § 1; Apr. 9, 1997, D.C. Law 11-238, § 2, 44 DCR 923.)
Prior Codifications1981 Ed., § 28:5-105.
1973 Ed., § 28:5-105.
Uniform Commercial Code CommentIt 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.