13 Pa.C.S. § 2325
"Letter of credit" term; "confirmed credit."
Pennsylvania · Pennsylvania Consolidated Statutes Title 13 — COMMERCIAL CODE · Status: effective
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- 13 Pa.C.S. § 2325, "Letter of credit" term; "confirmed credit.", Pennsylvania, version 1 as recorded 2026-09-27, yourstate.us, https://yourstate.us/provision/1379593
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(a) Failure to furnish letter.--Failure of the buyer seasonably to furnish an agreed letter of credit is a breach of the contract for sale.
(b) Effect of delivering letter.--The delivery to seller of a proper letter of credit suspends the obligation of the buyer to pay. If the letter of credit is dishonored, the seller may on seasonable notification to the buyer require payment directly from him.
(c) Definitions.--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 financial market of the seller.