2023 Tennessee Code
Title 47 - COMMERCIAL INSTRUMENTS AND TRANSACTIONS (§§ 47-1-101 — 47-50-121)
Chapter 2 - SALES (§§ 47-2-101 — 47-2-725)
Part 3 - GENERAL OBLIGATION AND CONSTRUCTION OF CONTRACT (§§ 47-2-301 — 47-2-328)
Section 47-2-325 - "Letter of credit" term - "Confirmed credit."

Universal Citation:
TN Code § 47-2-325 (2023)
Learn more This media-neutral citation is based on the American Association of Law Libraries Universal Citation Guide and is not necessarily the official citation.

  • (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.

Acts 1963, ch. 81, § 1 (2-325).


Disclaimer: These codes may not be the most recent version. Tennessee may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.