(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.
(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.
Section: Previous 11-2-315 11-2-316 11-2-317 11-2-318 11-2-319 11-2-320 11-2-321 11-2-322 11-2-323 11-2-324 11-2-325 11-2-326 11-2-327 11-2-328 NextLast modified: October 14, 2016