North Dakota Statutes

§ 41-02-42 — (2-325) Letter of credit term - Confirmed credit

North Dakota § 41-02-42
JurisdictionNorth Dakota
Title 41Uniform Commercial Code
Ch. 41-02Sales

This text of North Dakota § 41-02-42 ((2-325) Letter of credit term - Confirmed credit) is published on Counsel Stack Legal Research, covering North Dakota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
N.D. Cent. Code § 41-02-42 (2026).

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, if 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.

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Bluebook (online)
North Dakota § 41-02-42, Counsel Stack Legal Research, https://law.counselstack.com/statute/nd/41-02-42.