1. In this Article 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 Article (section 554.5102) 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.
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 Article and the sections in which they appear are: P MARGINS F
"Notation of credit"$T15@Section 554.5108 ~~
"Presenter"$T14@Section 554.5112(3) ~~ P MARGINS L
3. Definitions in other Articles applying to this Artcile and the sections in which they appear are: P MARGINS F
"Accept" or "Acceptance"$T15@Section 554.3409 ~~
"Contract for sale"$T15@Section 554.2106 ~~
"Draft"$T15@Section 554.3104 ~~
"Holder in due course"$T15@Section 554.3302 ~~
"Midnight deadline"$T15@Section 554.4104 ~~
"Security"$T15@Section 554.8102 ~~ P MARGINS L
4. In addition, Article 1 contains general definitions and principles of construction and interpretation applicable throughout this Article.
[C66, 71, 73, 75, 77, 79, 81, § 554.5103]
94 Acts, ch 1167, §117
1994 amendment to subsection 3 takes effect July 1, 1995; 94 Acts, ch 1167, §122; for law prior to July 1, 1995, see Code 1993
Iowa General Assembly
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