O.C.G.A.

O.C.G.A. § 11-2-325 (2019)

“Letter of credit” term; “confirmed credit.”

✓ O.C.G.A. — 2019 edition (Public.Resource.Org Release 73)

Code text and O.C.G.A. statutory annotations on this page reflect the 2019 Official Code of Georgia Annotated (Public.Resource.Org Release 73, 2019-08-21; public domain per Georgia v. Public.Resource.Org, 2020). The Syfert case-law annotations in Notes of Decisions, below, are current.

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(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.

Annotations

RESEARCH REFERENCES Am. Jur. Pleading and Practice Forms. 6 Am. Jur. Pleading and Practice Forms, Commercial Code, § 2:135. C.J.S. 77A C.J.S., Sales, § 208.

U.L.A. Uniform Commercial Code (U.L.A.) § 2325. ALR. Construction or provision for letter of credit in contract of sale, 38 A.L.R. 608.