N.Y. Uniform Commercial Code Law § 2-325: "Letter of Credit" Term; "Confirmed Credit"

Section 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.