§ 6A-2-325 - "Letter of credit" term – "Confirmed credit".
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 abreach of the contract for sale.
(2) The delivery to seller of a proper letter of creditsuspends the buyer's obligation to pay. If the letter of credit is dishonored,the seller may on seasonable notification to the buyer require payment directlyfrom 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 bya financing agency of good repute and, where the shipment is overseas, of goodinternational repute. The term "confirmed credit" means that the credit mustalso carry the direct obligation of such an agency which does business in theseller's financial market.