WHAT HAPPENS FIRST WHEN A BANK REFUSES TO PAY UNDER A LETTER OF CRE...

5. What happens first when a bank refuses to pay under a letter of credit?

A. The bank will cite a 'discrepancy*, some aspect of the documentation that is

not in line with the terms of the credit.

B. A check— list of commonly cited discrepancies will be used by banks.

C. The exporter will have to re-submit their shipping documents.

D. The exporter must contact the buyer asking the buyer to instruct the issuing bank to

extend the date of the credit.