8.2-325 - Letter of credit" term; "confirmed credit".
§ 8.2-325. "Letter of credit" term; "confirmed credit".
(1) Failure of the buyer seasonably to furnish an agreed letter of credit isa breach of the contract for sale.
(2) The delivery to seller of a proper letter of credit suspends the buyer'sobligation to pay. If the letter of credit is dishonored, the seller may onseasonable notification to the buyer require payment directly from him.
(3) Unless otherwise agreed the term "letter of credit" or "banker'scredit" in a contract for sale means an irrevocable credit issued by afinancing agency of good repute and, where the shipment is overseas, of goodinternational repute. The term "confirmed credit" means that the creditmust also carry the direct obligation of such an agency which does businessin the seller's financial market.
(1964, c. 219.)