The issuing bank will honor the draft as long as the documents appear to be in good order on their face and correspond to the terms of the letter of credit,regardless of the conditions of the goods received.

Question

Quizplus · Accepted Answer

This statement is true. The issuing bank's obligation is to examine the documents provided by the beneficiary and ensure they comply with the terms of the letter of credit. As long as the documents appear to be in good order and match the stipulations of the letter of credit, the issuing bank will honor the draft and release payment to the beneficiary. The bank's responsibility is to examine the documents only, and they are not required to examine the goods themselves.

The Issuing Bank Will Honor the Draft as Long as the Documents