Mich. Comp. Laws § 440.2325
Letter of credit or banker's credit; confirmed credit; definitions.
Michigan · Michigan Compiled Laws — UNIFORM COMMERCIAL CODE (Act 174 of 1962) · Status: effective
Cite this
- Citation
- Mich. Comp. Laws § 440.2325, Letter of credit or banker's credit; confirmed credit; definitions, Michigan, version 1 as recorded 2026-08-18, yourstate.us, https://yourstate.us/provision/1361787
- Permanent ID
ys:prov:1361787@1- SHA-256
571aba08fde66567a72e0f44d8d08fd1d63bd214ab2d244e780f4f2142b3ed96
The hash is SHA-256 of this version's text, with every run of whitespace collapsed to a single space and the ends trimmed. The ID always leads back here, and checking it says whether the text you cited is still the current version.
Full text
(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.