(5)

405.108 (5) and that is capable of being examined for compliance with the terms and conditions of the letter of credit. A document may not be oral.

405.102(1)(g)

(g)

“Good faith” means honesty in fact in the conduct or transaction concerned.

405.102(1)(h)

(h)

“Honor” of a letter of credit means performance of the issuer’s undertaking in the letter of credit to pay or deliver an item of value. Unless the letter of credit otherwise provides, honor occurs in any of the following circumstances:

405.102(1)(h)1.

1.

Upon payment.

405.102(1)(h)2.

2.

If the letter of credit provides for acceptance, upon acceptance of a draft and, at maturity, its payment.

405.102(1)(h)3.

3.

If the letter of credit provides for incurring a deferred obligation, upon incurring the obligation and, at maturity, its performance.

405.102(1)(i)

(i)

“Issuer” means a bank or other person that issues a letter of credit, but does not include an individual who makes an engagement for personal, family, or household purposes.

405.102(1)(j)

(j)

“Letter of credit” means a definite undertaking that satisfies the requirements of s.