The Vermont Statutes Online
The Statutes below include the actions of the 2025 session of the General Assembly.
NOTE: The Vermont Statutes Online is an unofficial copy of the Vermont Statutes Annotated that is provided as a convenience.
(Cite as: 9A V.S.A. § 2-325)
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§ 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 or her.
(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.