§ 2-325. "Letter of Credit" Term; "Confirmed Credit".
(2) The delivery to seller of a proper letter of credit suspends the buyer'sobligation 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'sfinancial market.