---
title: O.C.G.A. § 11-2-325. “Letter of credit” term; “confirmed credit.”
collection: code
id: 11-2-325
cite_as: O.C.G.A. § 11-2-325 (2025)
canonical_url: https://georgiacommons.org/code/11-2-325
md_url: https://georgiacommons.org/code/11-2-325.md
text_url: https://georgiacommons.org/code/11-2-325/text
source_url: https://www.legis.ga.gov/api/document/docs/default-source/joint-features-document-library/t11-(v9)-2022-pdf.pdf?sfvrsn=b5451bbd_0#page=164
date: 2025
status: active
corpus_version: 2025-supplement-89aa39ab3c68
license: CC0-1.0
publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice.
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version: the only printed version
in_force: true
current_through: Including Acts of the 2025 Regular Session of the General Assembly
heading_path: COMMERCIAL CODE / SALES / GENERAL OBLIGATION AND CONSTRUCTION OF CONTRACT
---

# O.C.G.A. § 11-2-325. “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.

## History

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