Fact Pattern 22-B1 (Questions B18-B20 apply)
Economy Bank issues a letter of credit in favor of Finish & Refining Company,a U.S.firm,to facilitate an international sales contract to buy resources from Global Mining,Ltd.,a British company.
-Refer to Fact Pattern 22-B1.Global Mining is entitled to payment when it
A)enters into the contract with Finish & Refining.
B)verifies that Finish & Refining has the money to pay for the purchase.
C)complies with the terms and conditions of the letter of credit.
D)asks to be paid.

Question

Quizplus · Accepted Answer

Global Mining is entitled to payment when they comply with the terms and conditions of the letter of credit, which is the agreement between Economy Bank and Finish & Refining Company. Therefore, the correct choice is C.

Fact Pattern 22-B1 (Questions B18-B20 Apply)