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§ 2-325. “Letter of credit” term; “confirmed credit”

West's Annotated Code of MarylandCommercial Law

West's Annotated Code of Maryland
Commercial Law
Title 2. Sales (Refs & Annos)
Subtitle 3. General Obligation and Construction of Contract (Refs & Annos)
MD Code, Commercial Law, § 2-325
§ 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.
(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.

Credits

Added by Acts 1975, c. 49, § 2, eff. July 1, 1975.
Formerly Art. 95B, § 2-325.
MD Code, Commercial Law, § 2-325, MD COML § 2-325
Current with all legislation from the 2023 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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