§ 2-325. “Letter of credit” term; “confirmed credit.”
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A. If the parties agree that the primary method of payment will be by letter of credit, the following rules apply:
1. The buyer’s obligation to pay is suspended by seasonable delivery to the seller of a letter of credit issued or confirmed by a financing agency of good repute in which the issuer and any confirmer undertake to pay against presentation of documents that evidence delivery of the goods.
2. Failure of a party seasonably to furnish a letter of credit as agreed is a breach of the contract for sale.
3. If the letter of credit is dishonored or repudiated, the seller, on seasonable notification, may require payment directly from the buyer. ONCA 13-23, eff. Sept. 24, 2013.