Fact Pattern 22-B1
First State Bank issues a letter of credit in favor of Oboe Company, an American firm, to facilitate an international sales contract to buy resources from Lapland Mining, Ltd., a Finnish company.
-Refer to Fact Pattern 22-B1. To obtain payment, Lapland must comply with all of the requirements of the letter of credit
A) strictly.
B) substantially.
C) reasonably.
D) materially.

Question

Fact Pattern 22-B1 
First State Bank issues a letter of credit in favor of Oboe Company, an American firm, to facilitate an international sales contract to buy resources from Lapland Mining, Ltd., a Finnish company.
-Refer to Fact Pattern 22-B1. To obtain payment, Lapland must comply with all of the requirements of the letter of credit
A) strictly.
B) substantially.
C) reasonably.
D) materially.

Quizplus · Accepted Answer

To obtain payment under a letter of credit, the beneficiary (in this case Lapland Mining) must strictly comply with all of the requirements set forth in the letter of credit. Any deviations or discrepancies could result in the issuing bank refusing to make payment.