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Buyer Acknowledgement or Approval for Payment of a Letter of Credit
It is a bad idea to permit terms to be included in a L/C in which the buyer is to provide documentation or acknowledge the goods were received as one of the documents the issuing bank must receive in order to pay the seller. Why? Because if the issuing bank never receives the required documentation, it cannot fund the L/C even if the seller’s documentation was perfect except the buyer's documentation is missing.
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