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

North Dakota Statutes

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

North Dakota·Title 41 Uniform Commercial Code·Ch. 41-02 Sales

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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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.

North Dakota § 41-02-42 ((2-325) Letter of credit term - Confirmed credit) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.