IN A CONFIRMED LETTER OF CREDIT, WHAT HAPPENS IF THE BANK PAYS THE...

45. In a confirmed letter of credit, what happens if the bank pays the exporter and the

issuing bank finds something wrong with the documents?

A. The exporter has a problem

B. The confirming bank has a problem.

C. It is the issuing bank which has an absolute obligation to pay the exporter

according to the terms of the credit

D. The confirming bank has paid the money to the exporter and has no way of

recovering it. The confirming bank must pay the exporter without recourse.