Section V Documentary Letter of Credit

(1)

A documentary letter of credit shall be a unilateral declaration in writing by a bank, by which it undertakes to pay to the person indicated in the documentary letter of credit the sum of the documentary letter of credit, provided he submits to the bank within the term specified in the documentary letter of credit the documents listed therein, and fulfills its other conditions. A documentary letter of credit shall come into force after notification of the person.

(2)

A bank may assign to another bank the receipt of documents, their verification, the compliance with other conditions under the documentary letter of credit and the payment of the amount.

(3)

The verification of the documents shall be prima facie.

(4)

Only the conditions specified in the documentary letter of credit shall be of importance for payment of the sum under the documentary letter of credit.

(5)

The obligations under the documentary letter of credit shall cease upon expiration of the term.

Unless anything else ensues from the documentary letter of credit, it shall be considered irrevocable and may be revoked or modified only with the consent of the third party.

A revocable documentary letter of credit may be revoked unilaterally by the bank, as long as it is not carried out.

A documentary letter of credit shall be divisible and non-transferable, unless otherwise ensues therefrom.

Where an irrevocable documentary letter of credit is confirmed by another bank, it shall undertake to pay on its own and directly the sum under the letter of credit.

The provisions for contract of mandate shall apply to the relations between the principal and the bank which has opened the documentary letter of credit, as well as between the banks under the documentary letter of credit.

The principal shall owe a fee to the bank.

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