1. The person ordering the opening of documentary credit shall be bound to repay to the bank the sum it has paid to the beneficiary, within the limits of the letter of credit opened, as well as paying the bank the expenses paid in this respect. 2. As a guarantee of its entitlements, the bank shall have the right to withhold the documents it receives from the seller and the right of pledge on the goods represented in their documents. 3. Where the person who ordered the opening of the letter of credit fails to pay to the bank the value of the bills of lading conforming with the conditions of the opening of the letter of credit, within one month from the date of being notified of the arrival of said bills, the bank may sell the goods by adopting the methods of execution on items commercially pledged. 4. Where the goods are perished or damaged, the pledge right shall pass to the insurance sum. 5. The bank and its customer may, after arrival of the documents of the letter of credit financed by said bank, agree that the customer debtor assigns the goods, subject of the documentary credit, or part thereof to the bank to repay the bank's debt in whole or in part. The bank shall thereafter entrust the customer with the receipt goods, keep them in trust and sell them on behalf of the bank for its account, based on the terms and conditions to be agreed by both parties. In such case, the customer's responsibility shall be that of a commission agent, and the bank shall have all the rights of an agent over such goods or their price.
Interpretation and application must be checked against the official text and current version.