A bank issues a letter of credit (L/C) and receives a request for payment under...

AFP CTP Question Answer

A bank issues a letter of credit (L/C) and receives a request for payment under the L/C. The buyer notifies the issuing bank not to make payment because there is a dispute over the quality of the merchandise. However, the documents received fully comply with the terms of the L/C. Which of the following statements is true?

The buyer may immediately return the merchandise and cancel the L/C.

The bank may delay payment until reimbursed by the buyer.

The bank may delay payment, provided the seller is notified of the dispute within three business days.

The bank must make payment and is entitled to immediate reimbursement from the buyer.

AFP CTP View All Questions

AFP CTP Summary

Vendor: AFP
Product: CTP
Update on: Oct 21, 2025
Questions: 1076

Price: $52.5 ~~$149.99~~

An analyst for a landscaping company wants to adjust her cash-flow forecast to account for...

Which of the following is a ratio that is often used by commercial banks to...

Halloween Special Limited Time 70% Discount Offer - Ends in 0d 00h 00m 00s - Coupon code: xmasmnth

A bank issues a letter of credit (L/C) and receives a request for payment under...

The Answer Is:

AFP CTP Summary

Payments We Accept

Contact Us