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. COL120106 DIV. 5 LETTERS OF CREDIT

(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.