400.2-325. "Letter of credit" term--"confirmed credit". - Missouri Statutes

"Letter of credit" term--"confirmed credit".

400.2-325. (1) Failure of the buyer seasonably to furnishan agreed letter of credit is a breach 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 creditis dishonored, the seller may on seasonable notification to thebuyer 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 irrevocablecredit issued by a financing agency of good repute and, where theshipment is overseas, of good international repute. The term"confirmed credit" means that the credit must also carry thedirect obligation of such an agency which does business in theseller's financial market.

(L. 1963 p. 503 § 2-325)