KRS 355.2-325: "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 m ay 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.