Definitions

§ 28:5—103. Definitions (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 28:5—102) 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 wliich 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: “Notation of credit”. Section 28:5—108. “Presenter”. Section 28:5—112(3). (3) Definitions in other articles applying to this article and the sections in wliich they appear are: “Accept” or “Acceptance”. Section 28:3—410. “Contract for sale”. Section 28:2—106. “Draft”, Section 28:3—104. “Holder in due course”. Section 28:3—302. “Midnight deadline”. Section 28:4—104. “Security”. Section 28:8—102. (4) In addition, article 1 contains general definitions and principles of construction and interpretation applicable throughout this article.