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CTP · Question #61
(Topic 1) A bank issues a letter of credit (L/C) and receives a request for payment under the L/C. The buyer notifies the issuing bank not to make payment because there is a dispute over terms of the
The correct answer is D. The bank must make payment and is entitled to immediate reimbursement from the. See the full explanation below for the reasoning.
Question
- (Topic 1)
A bank issues a letter of credit (L/C) and receives a request for payment under the L/C. The buyer notifies the issuing bank not to make payment because there is a dispute over terms of the L/C. Which of the following statements is true?
Options
- AThe buyer may immediately return the merchandise and cancel the L/C.
- BThe bank may delay payment until reimbursed by the buyer.
- CThe bank may delay payment, provided the seller is notified of the dispute within three
- DThe bank must make payment and is entitled to immediate reimbursement from the
How the community answered
(15 responses)- A13% (2)
- B7% (1)
- D80% (12)
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