A bank must pay monies due under a letter of credit even when its customer disputes whether the specified event giving rise to payment has occurred.

Name: A bank must pay monies due under a letter of credit even when its customer disputes whether the specified event giving rise to payment has occurred.
Brand: Quizplus
Rating: 4.9 (49 reviews)

Question

Quizplus · Accepted Answer

A letter of credit is a separate obligation from the underlying contract, and the bank must honor it if the terms are met, regardless of disputes between the customer and the beneficiary.

A Bank Must Pay Monies Due Under a Letter of Credit