us-gu · Through P.L. 38-133 (June 4, 2026)

13 GCA § 5103: Definitions.

(1) In this division 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 division (Section 5102) 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 term also includes a bank which procures issuance or confirmation on behalf of that bank's customer.
(2) Other definitions applying to this division and the sections in which they appear are:
Notation of credit. Section 5108.
Presenter. Section 5112(3).
(3) Definitions in other divisions applying to this division and the sections in which they appear are:
Accept or acceptance. Section 3410.
Contract for sale. Section 2106.
Draft. Section 3104.
Holder in due course. Section 3302.
Midnight deadline. Section 4104.
Security. Section 8102.
(4) In addition, Division 1 contains general definitions and principles of construction and interpretation applicable throughout this division.

Where this section sits in the code

Title 13: Uniform Commercial Code
Division 5: Letters of Credit

(1) In this division 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 division (Section 5102) 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.

(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 term also includes a bank which procures issuance or confirmation on behalf of that bank's customer.

(2) Other definitions applying to this division and the sections in which they appear are:

Notation of credit. Section 5108.

Presenter. Section 5112(3).

(3) Definitions in other divisions applying to this division and the sections in which they appear are:

Accept or acceptance. Section 3410.

Contract for sale. Section 2106.

Draft. Section 3104.

Holder in due course. Section 3302.

Midnight deadline. Section 4104.

Security. Section 8102.

(4) In addition, Division 1 contains general definitions and principles of construction and interpretation applicable throughout this division.

Collected 2026-09-27T03:28:18Z. Source file · JSON

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