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Texas Business & Commerce Code

§ 2.325 — "LETTER OF CREDIT" TERM; "CONFIRMED CREDIT"

BC § 2.325Title 1. UNIFORM COMMERCIAL CODE · Ch. 2. SALES · Art. C. GENERAL OBLIGATION AND CONSTRUCTION OF CONTRACT

Statute text

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(a)Failure of the buyer seasonably to furnish an agreed letter of credit is a breach of the contract for sale.
(b)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.
(c)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.

Legislative history

Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1, eff. Sept. 1, 1967.

Source: Texas Business & Commerce Code § 2.325 from the Texas Constitution and Statutes (Texas Legislature) (public record). DecisionDepot is for informational use only and is not legal advice — verify against the official source before relying on this text.