70A-2-325 - "Letter of credit" term -- "Confirmed credit."
70A-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 thecontract for sale.
(2) The delivery to seller of a proper letter of credit suspends the buyer's obligation topay. If the letter of credit is dishonored, the seller may on seasonable notification to the buyerrequire payment directly from him.
(3) Unless otherwise agreed the term "letter of credit" or "banker's credit" in a contract forsale means an irrevocable credit issued by a financing agency of good repute and, where theshipment is overseas, of good international repute. The term "confirmed credit" means that thecredit must also carry the direct obligation of such an agency which does business in the seller'sfinancial market.
Enacted by Chapter 154, 1965 General Session