§490:2-325  "Letter of credit"
term; "confirmed credit".  (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. [L 1965, c 208, §2-325; HRS §490:2-325]