Page:United States Statutes at Large Volume 47 Part 1.djvu/1320

 1296 Rights of creditors. SEC. 1299. CREDITOR ENTITL ED TO B ENEFIT OF SEC URITIES HELD BY sU R ET Y .--A creditor is entitled to the benefit of everything which a surety has received from the debtor by way of secu rity fo r the per for man ce of the obligation, and may, up on maturity of the obligation, compel the application of such security to its satisfaction. Letter of credit. LETTER OF CREDIT Cred itor enti tled to benefit of securities held by surety. Definition. How addressed. Liability of writer. Letters of credit, SEC. 1303. LE TT ERS OF CREDIT EITHER GE NER AL OR SPECIAL :A let- general or special. ter of credit is either general or special. When the request for credit in a letter is addressed to specified persons by name or de- scrip tion, the lett er is spec ial. All othe r le tters of credit are general. CE oss R ErER ENCE Credit to correspond with terms of letter, see section 1308. of general SEC. 1304. NATURE OF GENERAL LETTER OF CREDrr.-A general letter of credit gives any person to whom it may be shown authority to comply with its request, and by his so doing it becomes, as to him, of the same effect as if addressed to him by name. SEC. 1305. ExTENT OF GENERAL LETTER OF CREDIT.-Several persons may succe ssively give credit upon a general letter. Letter of credit as SEC. 1306 . A LETTER OF CREDIT MAY BE A CCNTINUING GUARANTY : continuing guaranty. If the parties to a letter of credit appear, by its terms, to contem- plate a course of future dealing between the parties, it is not ex- hausted by giving a credit, even to the amount limited by the letter, which is subsequently reduced or satisfied by payments made by the debtor, but is to be deemed a continuing guaranty. SEC. 1307. WHEN NOTICE TO THE WRITER NECESSARY .-The writer of a letter of credit is liable for credit given upon it without notice to hi m, unless its terms e xpress or imply the necessity of giv in g not ic e. SEC. 1308 . THE CREDIT GIVEN MUST AGREE WITH THE TERMS OF TH E LETTER .-If a .letter of credit prescribes the persons by whom, or the mode in which, the credit is to be given, or the term of credit, or limits the amount thereof, the writer is not bound except for trans- actions which, in these respects, conform strictly to the terms of the letter.. Nature letter. Extent of. Notice to writer. Credit given must agree with terms of let ter. LIENS IN GEN- ERAL. Definition. Oawr g i )r spenial. 72d CONGRESS . SESS . II. CH. 128. FEBRU ARY 27, 1933 . RIGHTS OF CREDITORS SEC. 1300. LETTER OF CREDIT, WHAT .-A letter of credit is a writ- ten instrument, addressed by one person to another, requesting the latter to give credit to the person in whose favor it is drawn. SEC. 1301 . How ADDRESSED.-A letter of credit may be addressed to several persons in succession . SEC. 1302. LIABILITY OF THEm wiumit . --T he wr ite r of a letter of credit is, upon the default of the debtor, liable to those who gave credit in compliance with its terms . Cross REFzuENCE When notice to the writer necessary, see section 1307. CHAPTER 62 .-LI ENS IN GENER AL DEFINITION OF LIENS SEC. 1309, LIEN, WHAT.-A lien is a charge imposed in some mode other than by a transfer in trust upon specific property by which it is made security for the performance of an act . SEC. 1310. LIENS, GENERAL OR SPECIAL .-Liens are either general or special.