Establishment of Letter of Credit

Rights and obligations under a letter of credit arise when the letter of credit is “established.”

•    A credit is established with respect to an Applicant as soon as it is sent to the Applicant.

•    A credit is established with respect to a Beneficiary when the Beneficiary either receives the letter of credit or an authorized written notice of its issuance.

•    After a letter of credit has been established with respect to a Beneficiary, the Beneficiary has the right to request payment pursuant to the terms of the letter of credit.