Article 867: General provisions on the settlement of letters of credit

1. In the calculation of a letter of credit, the issuing bank acting on behalf of the payer undertakes to pay or accept and pay the bill of exchange issued on behalf of the recipient of the funds. 2. To perform any other action pursuant to the letter of credit upon submission by the consignee of the documents provided for in the letter of credit and in accordance with the terms of the letter of credit. The issuer may authorize another bank (the executing bank) to make payments or accept and pay the bill of exchange issued by the recipient of the funds, or to perform other acts of execution. By letter of credit, upon submission by the consignee of the documents provided for in the letter of credit and in accordance with the terms of the letter of credit, the implementing bank is entitled to accept the letter of credit from the issuing bank or the withdrawal. The implementing bank shall not be allowed to give notice of such an order by giving the issuing bank. and the issuing bank, if it has expressly agreed to do so, including by acting in accordance with the terms of the letter of credit. 3. In the event of the opening of a funded (deposited) letter of credit, the issuing bank is required to transfer the amount of the letter of credit (covery) at the payer ' s expense or provided In the event of the opening of an outstanding (guaranteed) letter of credit, the issuing bank may provide a copy of the letter of credit to the issuing bank for the duration of the obligation of the issuing bank. to the issuing bank, in the execution of the letter of credit, the right to write off funds from the issuing bank ' s account opened at the performing bank within the scope of the letter of credit mms of the letter of credit or may indicate in the letter of credit another way of refunding to the implementing bank the amounts paid under the letter of credit. 4. The letter of credit shall be deemed to be open to the issuing bank prior to the receipt of funds from the issuing bank, except in the case of confirmation of the letter of credit by the performing bank. The bank that gives instructions to another bank in the event of action under the letter of credit is obliged to pay or to pay, unless otherwise provided by law, bank rules and contract. The issuing bank, which uses the services of another bank to comply with the instructions of the payer, makes any commission or cost incurred by such bank in complying with the instructions received. The payer is required to reimburse the issuing bank for all costs incurred in complying with its instructions under the letter of credit. in accordance with the present Code, the banking rules, the terms of the letter of credit and, insofar as they are not regulated, the customs applied in banking practice.