MARIN MANDEL, Governor                                  207

demand for payment; and

(b)   To a credit issued by a person other than
a bank if the credit requires that the draft or demand
for payment be accompanied by a document of title; and

(c)    To a credit issued by a bank or other
person if the credit is not within subparagraphs (a) or
(b) but conspicuously states that it is a letter of
credit or is conspicuously so entitled.

(2)   Unless the engagement meets the requirements of
subsection (1), this [subtitle] TITLE does not apply to
engagements to make advances or to honor drafts or
demands for payment, to authorities to pay or purchase,
to guarantees or to general agreements.

(3)    This [subtitle] TITLE deals with some but not
all of the rules and concepts of letters of credit as
such rules or concepts have developed prior to this act
or may hereafter develop. The fact that this [subtitle]
TITLE states a rule does not by itself require, imply or
negate application of the same or a converse rule to a
situation not provided for or to a person not specified
by this [subtitle] TITLE.

5—103. Definitions.

(1) In this [subtitle] TITLE 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
[subtitle] TITLE (§ 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.