672.325 “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.—s. 1, ch. 65-254; s. 571, ch. 97-102.
Note.—s. 2-325, U.C.C.
Section: Previous 672.315 672.316 672.317 672.318 672.319 672.320 672.321 672.322 672.323 672.324 672.325 672.326 672.327 672.328 NextLast modified: September 23, 2016