N.Y. U.C.C. 2-325

Section 2--325. "Letter of Credit" Term; "Confirmed Credit".\n (1) Failure of the buyer seasonably to furnish an agreed letter of\ncredit is a breach of the contract for sale.\n (2) The delivery to seller of a proper letter of credit suspends the\nbuyer's obligation to pay. If the letter of credit is dishonored, the\nseller may on seasonable notification to the buyer require payment\ndirectly from him.\n (3) Unless otherwise agreed the term "letter of credit" or "banker's\ncredit" in a contract for sale means an irrevocable credit issued by a\nfinancing agency of good repute and, where the shipment is overseas, of\ngood international repute. The term "confirmed credit" means that the\ncredit must also carry the direct obligation of such an agency which\ndoes business in the seller's financial market.\n