QUESTION: 17

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.

Answer(s): D

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QUESTION: 18

The KEY decision in using CCD+ and CTX formats for B2B payments is:

whether to keep the payment and remittance information together or separate.
whether to use the Internet or an EDI spoke to transmit electronic payments.
whether to use an EDI or a UN/EDIFACT protocol to transfer the value electronically.
whether an evaluated receipts or paid-on-production technique is being used for the transfer.

Answer(s): A

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