Title 11, Chapter 2, Section 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.