§ 554.2325 — “Letter of credit” term — “confirmed credit”

Iowa § 554.2325

• Jurisdiction: Iowa
• Title XIII: COMMERCE
• Ch. 554: UNIFORM COMMERCIAL CODE

Text

1. Failure of the buyer seasonably to furnish an agreed letter of credit is a breach of the
contract for sale.
2. The delivery to seller of a proper letter of credit suspends the buyer’s obligation to pay.
If the letter of credit is dishonored, the seller may on seasonable notification to the buyer
require payment directly from the buyer.
3. Unless otherwise agreed the term “letter of credit” or “banker’s credit” in a contract for
sale means an irrevocable credit issued by a financing agency of good repute and, where the
shipment is overseas, of good international repute. The term “confirmed credit” means that
the credit must also carry the direct obligation of such an agency which does business in the
seller’s financial market.

Legislative History

[C66, 71, 73, 75, 77, 79, 81, §554.2325]