Page:United States Statutes at Large Volume 77.djvu/741

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STAT,.

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PUBLIC LAW 88-243-DEC. 30, 1963

(2) Unless the eii^ragenient meets the requirements of subsection (1), this article does not Jipply to enofagements to make advances or to honor drafts or demands for payment, to authorities to pay or purcliase, to guarantees or to general agreements. (3) This article deals with some but not all of the rules and concepts of letters of credit as such rules or concepts have developed prior to this subtitle or may hereafter develop. The fact that this article states a rule does not by itself require, imply or negate application of the same or a converse rule to a situation not provided for or to a person not specified by this article. §28:5—103. Definitions (1) I n 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 28:5—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 terai 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: "Notation of credit". Section 28:5—108. "Presenter"._ Section 28:5—112(3). (3) Definitions in other articles applying to this article and the sections in which they appear are: "Accept" or "Acceptance". Section 28:3—410. "Contract for sale". Section 28:2—106. "Draft". Section 28:3—104. "Holder in due course". Section 28:3—302. "Midnight deadline". Section 28:4—104. "Security". Section 28:8—102. (4) I n addition, article 1 contains general definitions and principles of construction and interpretation applicable throughout this article. §28:5—104. Formal requirements; signing (1) Except as otherwise required in subsection (l)(c) of section 28:5—102 on scope, no particular form of phrasing is required for a credit. A credit must be in writing and signed by the issuer and a confirmation must be in writing and signed by the confirming bank. A modification of the terms of a credit or confirmation must be signed by the issuer or confirming bank.

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