Iowa Code § 554.2325
“Letter of credit” term — “confirmed credit”
Iowa · Iowa Code Chapter 554 — Uniform Commercial Code · Status: effective
Cite this
- Citation
- Iowa Code § 554.2325, “Letter of credit” term — “confirmed credit”, Iowa, version 1 as recorded 2026-10-03, yourstate.us, https://yourstate.us/provision/2272148
- Permanent ID
ys:prov:2272148@1- SHA-256
8eaf2e5f125f394fd781e0d53543d033b0e6604c10a9a4ae501ad7c6c66d2f43
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 the buyer.
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.