Uniform Commercial Code
U.C.C. - ARTICLE 5
LETTERS OF CREDIT
§ 5-103. Definitions.
(1) In this Article unless the context otherwise requires
- (a) "Credit" or "letter of credit" means an engagement by a bank or other person made at the request of a customer and of a kind within the scope of this Article (Section 5-102) that the issuer will honor drafts or other demands for payment upon compliance with the conditions specified in the credit. A credit may be either revocable or irrevocable. The engagement may be either an agreement to honor or a statement that the bank or other person is authorized to honor.
- (b) A "documentary draft" or a "documentary demand for payment" is one honor of which is conditioned upon the presentation of a document or documents. "Document" means any paper including document of title, security, invoice, certificate, notice of default and the like.
- (c) An "issuer" is a bank or other person issuing a credit.
- (d) A "beneficiary" of a credit is a person who is entitled under its terms to draw or demand payment.
- (e) An "advising bank" is a bank which gives notification of the issuance of a credit by another bank.
- (f) A "confirming bank" is a bank which engages either that it will itself honor a credit already issued by another bank or that such a credit will be honored by the issuer or a third bank.
- (g) A "customer" is a buyer or other person who causes an issuer to issue a credit. The term also includes a bank which procures issuance or confirmation on behalf of that bank's customer.
(2) Other definitions applying to this Article and the sections in which they appear are:
(3) Definitions in other Articles applying to this Article and the sections in which they appear are:
- "Accept" or "Acceptance". Section 3-409.
- "Contract for sale". Section 2-106.
- "Draft". Section 3-104.
- "Holder in due course". Section 3-302.
- "Midnight deadline". Section 4-104.
- "Security". Section 8-102.
(4) In addition, Article 1 contains general definitions and principles of construction and interpretation applicable throughout this Article.
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