Fact Pattern 21-1BFirst 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 21-1B. First State Bank is bound to
A. make sure that the parties perform the contract.
B. verify with Oboe that the transaction has been completed.
C. make payment when Lapland presents the proper documents.
D. pay Lapland whenever it asks to be paid.
Answer: C
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