Fact Pattern 9-1
First State Bank issues a letter of credit in favor of Oboe Company, an American firm, to facilitate an international sales contract to buy resources from Lapland Mining, Ltd., a Finnish company.

-Refer to Fact Pattern 9-1.In a letter of credit, the beneficiary is

Question

Fact Pattern 9-1
First State Bank issues a letter of credit in favor of Oboe Company, an American firm, to facilitate an international sales contract to buy resources from Lapland Mining, Ltd., a Finnish company.

-Refer to Fact Pattern 9-1.In a letter of credit, the beneficiary is

Quizplus · Accepted Answer

The beneficiary is the party who will receive the payment under the letter of credit, and in this case, Lapland is the beneficiary. Oboe is the applicant who requested the letter of credit, and First State Bank is the issuing bank that will be responsible for making the payment to Lapland.

Fact Pattern 9-1 First State Bank Issues a Letter of Credit in Favor