554.2325 'Letter of credit' term — 'confirmed credit'. 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 buyerrequire 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 theshipment is overseas, of good international repute. The term 'confirmed credit' means thatthe credit must also carry the direct obligation of such an agency which does business in theseller’s financial market. [C66, 71, 73, 75, 77, 79, 81, §554.2325]Referred to in §554.2103 Sat Dec 23 01:49:52 2023 Iowa Code 2024, Section 554.2325 (25, 0)
Iowa Legal Code