Official Code of Georgia Annotated

Title 11. COMMERCIAL CODE · Chapter 2. · Article 2. SALES · Part 3. GENERAL OBLIGATION AND CONSTRUCTION OF CONTRACT

11-2-325. “Letter of credit” term; “confirmed credit.”

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Current through: Including Acts of the 2025 Regular Session of the General Assembly.

(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.#

The notes below are printed with the section but are not enacted law (O.C.G.A. § 1-1-1(c)). They are shown apart from the text.

Code 1933, § 109A-2-325, enacted by Ga. L. 1962, p. 156, § 1.

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Current through: Including Acts of the 2025 Regular Session of the General Assembly.

Text read from t11-(v9)-2022-pdf.pdf, Volume V9, 2022 edition, pages 164 to 165; merge action: carried; file SHA-256 ad397fccbf21.