California Financial Code

§ 6526

FIN § 6526Div. 2 · Ch. 4 · Art. 1

Statute text

An association may issue commercial and standby letters of credit in conformance with the Uniform Commercial Code or the Uniform Customs and Practice for Documentary Credits Act and may pledge collateral to secure its obligations thereunder. Except as otherwise provided by regulations of the commissioner, such issuance shall be subject to the following requirements:

(a)Each letter of credit must conspicuously state that it is a letter of credit.

(b)The issuer’s undertaking must contain a specified expiration date or be for a definite term, and must be limited in amount.

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Legislative history

Added by Stats. 1983, Ch. 1091, Sec. 2.