§ 25-2-325. "Letter of credit" term; "confirmed credit." - North Carolina Statutes

§25‑2‑325.  "Letter of credit" term; "confirmedcredit."

(1)        Failure of thebuyer seasonably to furnish an agreed letter of credit is a breach of thecontract for sale.

(2)        The delivery toseller of a proper letter of credit suspends the buyer's obligation to pay. Ifthe letter of credit is dishonored, the seller may on seasonable notificationto the buyer require payment directly from him.

(3)        Unless otherwiseagreed the term "letter of credit" or "banker's credit" ina contract for sale means an irrevocable credit issued by a financing agency ofgood repute and, where the shipment 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 the seller'sfinancial market. (1965, c. 700, s. 1.)