Under a letter of credit,the issuer is bound to pay the beneficiary after the beneficiary complies with the terms of the letter.

Question

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Under a letter of credit, the issuer's obligation to pay the beneficiary is dependent on the beneficiary fulfilling the terms and conditions stipulated in the letter. Once the beneficiary has complied with these requirements, the issuer is obligated to make the payment as per the terms of the letter.

Under a Letter of Credit,the Issuer Is Bound to Pay