Fact Pattern 21-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 21-B1.In this letter of credit,the ben?eficiary is
A)Lapland.
B)Oboe.
C)First State Bank.
D)Finland.

Question

Fact Pattern 21-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 21-B1.In this letter of credit,the ben?eficiary is
A)Lapland.
B)Oboe.
C)First State Bank.
D)Finland.

Quizplus · Accepted Answer

The beneficiary of a letter of credit is the party in whose favor the letter is issued, which in this case is Lapland Mining, Ltd., the Finnish company.