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.In this letter of credit,the account party is
A)Global Mining.
B)Finish & Refining.
C)Economy Bank.
D)Great Britain.

Question

Quizplus · Accepted Answer

The account party in the letter of credit is the beneficiary, in this case, Finish & Refining Company, the U.S. firm that will receive payment upon fulfilling the terms of the letter of credit. Global Mining is the seller of the resources and is not the account party. Economy Bank is the issuing bank and Great Britain is not a party to the transaction.

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