- Consolidated Laws - Uniform Commercial Code
PART 7
ADVICE OF INTERNATIONAL SIGHT DRAFT
Section 3--701. Letter of Advice of International Sight Draft.
(1) A "letter of advice" is a drawer`s communication to the drawee
that a described draft has been drawn.
(2) Unless otherwise agreed when a bank receives from another bank a
letter of advice of an international sight draft the drawee bank may
immediately debit the drawer`s account and stop the running of interest
pro tanto. Such a debit and any resulting credit to any account covering
outstanding drafts leaves in the drawer full power to stop payment or
otherwise dispose of the amount and creates no trust or interest in
favor of the holder.
(3) Unless otherwise agreed and except where a draft is drawn under a
credit issued by the drawee, the drawee of an international sight draft
owes the drawer no duty to pay an unadvised draft but if it does so and
the draft is genuine, may appropriately debit the drawer`s account.
