Sec. 42a-2-325. "Letter of credit" term; "confirmed credit".
Sec. 42a-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.
(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.
(1959, P.A. 133, S. 2-325.)