30-2-325. "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 the 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.
History: En. Sec. 2-325, Ch. 264, L. 1963; R.C.M. 1947, 87A-2-325; amd. Sec. 850, Ch. 56, L. 2009.
Structure Montana Code Annotated
Chapter 2. Uniform Commercial Code Sales
Part 3. General Obligation and Construction of Contract
30-2-301. General obligations of parties
30-2-302. Unconscionable contract or clause
30-2-303. Allocation or division of risks
30-2-304. Price payable in money, goods, realty, or otherwise
30-2-306. Output, requirements and exclusive dealings
30-2-307. Delivery in single lot or several lots
30-2-308. Absence of specified place for delivery
30-2-309. Absence of specific time provisions -- notice of termination
30-2-310. Open time for payment or running of credit -- authority to ship under reservation
30-2-311. Options and cooperation respecting performance
30-2-312. Warranty of title and against infringement -- buyer's obligation against infringement
30-2-313. Express warranties by affirmation, promise, description, sample
30-2-314. Implied warranty -- merchantability -- usage of trade
30-2-315. Implied warranty -- fitness for particular purpose
30-2-316. Exclusion or modification of warranties
30-2-317. Cumulation and conflict of warranties express or implied
30-2-318. Third-party beneficiaries of warranties express or implied
30-2-319. F.O.B. and F.A.S. terms
30-2-320. C.I.F. and C.&F. terms
30-2-323. Form of bill of lading required in overseas shipment -- "overseas"
30-2-324. "No arrival, no sale" term
30-2-325. "Letter of credit" term -- "confirmed credit"
30-2-326. Sale on approval and sale or return -- rights of creditors
30-2-327. Special incidents of sale on approval and sale or return