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.
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