TITLE 6A
Uniform Commercial Code

CHAPTER 6A-2
Sales

PART 6A-2-301
General Obligation and Construction of Contract

SECTION 6A-2-325


§ 6A-2-325 "Letter of credit" term – "Confirmed credit".

(1) Failure of the buyer seasonably to furnish an agreed letter of credit is a breach of the contract for sale.

(2) The delivery to seller of a proper letter of credit suspends the buyer's obligation to pay. If the letter of credit is dishonored, the seller may on seasonable notification to the buyer require payment directly from him or her.

(3) Unless otherwise agreed, the term "letter of credit" or "banker's credit" in a contract for sale means an irrevocable credit issued by a financing agency of good repute and, where the shipment is overseas, of good international repute. The term "confirmed credit" means that the credit must also carry the direct obligation of such an agency which does business in the seller's financial market.

History of Section.
(P.L. 1960, ch. 147, § 1.)