Fact Pattern 9-1
First State Bank issues a letter of credit in favor of Whirlwind Instruments 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. First State Bank must pay Lapland when Lapland

Question

Fact Pattern 9-1 
First State Bank issues a letter of credit in favor of Whirlwind Instruments 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. First State Bank must pay Lapland when Lapland

Quizplus · Accepted Answer

First State Bank is obligated to pay Lapland Mining, Ltd. when Lapland complies with the terms and conditions of the letter of credit. This ensures that Lapland fulfills its end of the contract and that Whirlwind Instruments Company receives the resources it purchased.