Title XIII.

LETTERS OF CREDIT

Art. 567. Letters of credit are those issued by one merchant to

another, or for the purpose of attending to a commercial transaction.
Art. 568. The essential conditions of letters of credit shall be —

1, To be issued in favor of a determined person and not to order.

2. To be limited to a fixed and specified amount or to one or more

indeterminate amounts, but all included in a maximum sum the limit
of which must be exactly stated.

Letters of credit which do not have oue of these conditions shall be

considered simply as letters of recommendation.

Art. 569. Who issues a letter of credit shall be liable to the person
on whom it was issued for the amouut paid by virtue of the same within
the maximum fixed therein.

Letters of credit can not be protested, even when not paid, nor can the
holder thereof acquire any right of action for said nonpayment against
the person who issued it.

The payor shall have a right to demand the proof of the identity of
the person in whose favor the letter of credit was issued.

Art. 570. The donor of a letter of credit may annul it, informing the
bearer and the person to whom it is addressed of said revocation.

Art. 571. The holder of a letter of credit shall pay the donor the
amount thereof without delay.

Should he not do so an action including attachment may be brought

to recover said amount with the legal interest and the current exchange
in the place where the payment was made on the place where it was
repaid.

Abt. 572. If the holder of the letter of credit does not make use
thereof in the period agreed upon with the donor of the same, or in the
absence of a fixed period, within six mouths from its date, in any place

iu Europe and within twelve months outside thereof, it shall be void in

fact and in law. '

Aet. 572. (Cuba and Porto Rico.) See the note to this article for
the Peninsula.

ABT.572. (Philippines.) If the holder of a letter of credit does not

make use thereof within the period agreed upon with the donor of the
same, or, in the absence of a fixed period, within six months from its
date in any point of the Philippine Islands, and within twelve months
outside thereof, it shall be void in fact and in law.

i No amendment or explanation has been made in the modification of

this article for Cuba and Porta
Rico, and weareoftue opinion that an amendment similar to that for the
Philippine