(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 him.
(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.
Structure Maryland Statutes
Subtitle 3 - General Obligation and Construction of Contract
Section 2-301 - General Obligations of Parties
Section 2-302 - Unconscionable Contract or Clause
Section 2-303 - Allocation or Division of Risks
Section 2-304 - Price Payable in Money, Goods, Realty, or Otherwise
Section 2-305 - Open Price Term
Section 2-306 - Output, Requirements and Exclusive Dealings
Section 2-307 - Delivery in Single Lot or Several Lots
Section 2-308 - Absence of Specified Place for Delivery
Section 2-309 - Absence of Specific Time Provisions; Notice of Termination
Section 2-310 - Open Time for Payment or Running of Credit; Authority to Ship Under Reservation
Section 2-311 - Options and Cooperation Respecting Performance
Section 2-312 - Warranty of Title and Against Infringement; Buyer's Obligation Against Infringement
Section 2-313 - Express Warranties by Affirmation, Promise, Description, Sample
Section 2-314 - Implied Warranty; Merchantability; Usage of Trade
Section 2-316 - Exclusion or Modification of Warranties
Section 2-316.1 - Limitation of Exclusion or Modification of Warranties to Consumers
Section 2-317 - Cumulation and Conflict of Warranties Express or Implied
Section 2-318 - Third Party Beneficiaries of Warranties Express or Implied
Section 2-319 - f.o.b. and f.a.s. Terms
Section 2-320 - c.i.f. and C. & F. Terms
Section 2-322 - Delivery "Ex-Ship"
Section 2-323 - Form of Bill of Lading Required in Overseas Shipment; "Overseas"
Section 2-324 - "No Arrival, No Sale" Term
Section 2-325 - "Letter of Credit" Term; "Confirmed Credit"
Section 2-326 - Sale on Approval and Sale or Return
Section 2-327 - Special Incidents of Sale on Approval and Sale or Return