A contract for opening a credit is not considered a loan, and the customer shall not be bound to use the letter of credit opened in his favor.
Interpretation and application must be checked against the official text and current version.
TaxUAE Commercial Transactions Law
Book Three: Banking Transactions · Part Three: Bank Credits · Chapter Three: Opening a Letter of Credit: Article (420)
A contract for opening a credit is not considered a loan, and the customer shall not be bound to use the letter of credit opened in his favor.
Interpretation and application must be checked against the official text and current version.