A standby letter of credit acts a performance guarantee and serves the same purpose as a bank guarantee or performance bond.
Correct Answer:
Verified
Q1: The seller assumes the risk of non-delivery
Q2: The party in whose favor the letter
Q3: The bank acts a guarantor of payment
Q5: Bill of exchange and draft are two
Q6: Under the UCP 500, a document titled
Q7: In a documentary collections transaction, the bank
Q8: The use of a draft or promissory
Q9: The strict compliance rule says that the
Q10: The issuing bank is responsible for inspecting
Q11: Banks are required to know or investigate
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