Issuance, Amendment, Cancellation, and Duration

  1. Law
  2. Georgia Code
  3. Commercial Code
  4. Letters of Credit
  5. Issuance, Amendment, Cancellation, and Duration

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  1. A letter of credit is issued and becomes enforceable according to its terms against the issuer when the issuer sends or otherwise transmits it to the person requested to advise or to the beneficiary. A letter of credit is revocable only if it provides that it is revocable.
  2. After a letter of credit is issued, rights and obligations of a beneficiary, applicant, confirmer, and issuer are not affected by an amendment or cancellation to which that person has not consented except to the extent the letter of credit provides that it is revocable or that the issuer may amend or cancel the letter of credit without that consent.
  3. If there is no stated expiration date or other provision that determines its duration, a letter of credit expires one year after its stated date of issuance or, if none is stated, one year after the date on which it is issued.
  4. A letter of credit that states that it is perpetual expires five years after its stated date of issuance or, if none is stated, five years after the date on which it is issued.

(Code 1981, §11-5-106, enacted by Ga. L. 2002, p. 995, § 1.)

RESEARCH REFERENCES

Am. Jur. 2d.

- 50 Am. Jur. 2d, Letters of Credit, and Credit Cards, §§ 17, 23, 32.

U.L.A.

- Uniform Commercial Code (U.L.A.) § 5-106.

ALR.

- Liability of one who purchases draft and secures its payment after letter of credit has expired, 56 A.L.R. 1190.

Modification, revocation, or reformation of letter of credit - modern cases, 13 A.L.R.5th 465.


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