LETTER OF CREDIT

Uniform Commercial Code § 5-10. Definitions.:

(10) “Letter of credit” means a definite undertaking that satisfies the requirements of Section 5-104 by an issuer to a beneficiary at the request or for the account of an applicant or, in the case of a financial institution, to itself or for its own account, to honor a documentary presentation by payment or delivery of an item of value.

Black’s Law Dictionary 1st Edition, pages 704-705:

An open or sealed letter, from a merchant in one place, directed to another, in another place or country, requiring him, if a person therein named,  or the bearer of the letter, shall have occasion to buy commodities, or to want money to any particular or unlimited amount, either to procure thesame or to pass his promise, bill, or bond for it, the writer of the letter undertaking to provide him the money for goods, or to repay him by exchange, or to give him such satisfaction as he shall require, either for himself, or the bearer of the letter. 3 Chit. Com. Law, 336.

A letter of credit is a written instrument, addressed by one person to another, requesting the latter to give credit to the person in whose favor it is drawn. Civil Code Cal. § 2858.

Black’s Law Dictionary 2nd Edition, page 297:

An open or sealed letter, from a merchant in one place, directed to another, in another place or country, requiring him, if a person therein named,  or the bearer of the letter, shall have occasion to buy commodities, or to want money to any particular or unlimited amount, either to procure thesame or to pass his promise, bill, or bond for it, the writer of the letter undertaking to provide him the money for goods, or to repay him by exchange, or to give him such satisfaction as he shall require, either for himself, or the bearer of the letter. 3 Chit. Com. Law, 336.

A letter of credit is a written instrument, addressed by one person to another, requesting the latter to give credit to the person in whose favor it is drawn. Civil Code Cal. § 2858. Mechanics’ Bank v. New York & N. H. R. Co., 13 N. Y. 630; Pollock v. Helm, 54 Miss. 5, 28 Am. Rep. 342; Lafargue v. Harrison, 70 Cal. 380, 9 Oac. 261, 59 Am. Rep. 416.   General and special.  A general letter of credit is one, addressed to any and all person, without naming any one in particular, while a special letter of credit is addressed to a particular individual, firm, or corporation by name. Brickhead v. Brown, 5 Hill  (N.  Y.) 642; Civ. Code Mont. 1895 § 3713.