Fact Pattern 31-1
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 31-1.First State Bank must pay Lapland when Lapland

Question

Fact Pattern 31-1 
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 31-1.First State Bank must pay Lapland when Lapland

Quizplus · Accepted Answer

Lapland will receive payment from First State Bank only if it complies with the terms and conditions of the letter of credit. The letter of credit serves as a guarantee of payment from the bank to Lapland upon proper fulfillment of the specified requirements.