§ 6A-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 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 or her.
(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 of Section.P.L. 1960, ch. 147, § 1.
Structure Rhode Island General Laws
Title 6A - Uniform Commercial Code
Part 3 - General Obligation and Construction of Contract
Section 6A-2-301. - General obligations of parties.
Section 6A-2-302. - Unconscionable contract or clause.
Section 6A-2-303. - Allocation or division of risks.
Section 6A-2-304. - Price payable in money, goods, realty, or otherwise.
Section 6A-2-305. - Open price term.
Section 6A-2-306. - Output, requirements, and exclusive dealings.
Section 6A-2-307. - Delivery in single lot or several lots.
Section 6A-2-308. - Absence of specified place for delivery.
Section 6A-2-309. - Absence of specific time provisions — Notice of termination.
Section 6A-2-311. - Options and cooperation respecting performance.
Section 6A-2-313. - Express warranties by affirmation, promise, description, or sample.
Section 6A-2-314. - Implied warranty — Merchantability — Usage of trade.
Section 6A-2-315. - Implied warranty — Fitness for particular purpose.
Section 6A-2-316. - Exclusion or modification of warranties.
Section 6A-2-317. - Cumulation and conflict of warranties express or implied.
Section 6A-2-318. - Third party beneficiaries of warranties express or implied.
Section 6A-2-319. - F.O.B. and F.A.S. terms.
Section 6A-2-320. - C.I.F. and C. & F. terms.
Section 6A-2-322. - Delivery “ex-ship”.
Section 6A-2-323. - Form of bill of lading required in overseas shipment — “Overseas”.
Section 6A-2-324. - “No arrival, no sale” term.
Section 6A-2-325. - “Letter of credit” term — “Confirmed credit”.
Section 6A-2-326. - Sale on approval and sale or return — Rights of creditors.
Section 6A-2-327. - Special incidents of sale on approval and sale or return.