258 Payment Terms and Procedures the ground that it had no opportunity to test the quality of the products. The of credit did not require that a testing certificate from an independent laboratory accompany the documents Questions 1. Was the bank justified in withholding payment? ity of the merchandise? 3. What is the importance of the independent principle for this case? 2. Does the buyer or the bank have the right to demand inspection of the qual Case 11.3 Deferred Payment in Letters of Credit (LC) Bank A issued a deferred payment IC in favor of Martin Co. with a promise to pay sixty days from the bill of ladine (Bed Comfolvundertook to cover the confirming bank at maturity. Martin Co presented complying documents to the confirming bank, after which the latter made a discounted payment. The beneficiary (Martin Co.) then assigned the L/C to the confirming bank. Bank A was not notified of the assignment. Bank A gave notice to the confirming bank that the L/C was forged and refused payment. It also stated in its response that the confirming bank should have delayed payment till the maturity date, before which the fraud would have been discovered. Bank A claims that it did not ask the confirming bank to discount give value to the documents before the maturity date. The L/C was subject to UCP 600. Questions 1. Should Bank A pay the confirming bank? Why/why not? 2. Would the outcome be different if Bank A issued an acceptance UC? 3. What is Case 11.3 Deferred Payment in Letters of Credit (LIC) Bank A issued a deferred payment L/C in favor of Martin Co. with a promise to bank at maturity. Martin Co. presented complying documents to the confirming pay sixty days from the bill of lading (BL). It also undertook to cover the confirming bank, after which the latter made a discounted payment. The beneficiary (Martin Co.) then assigned the L/C to the confirming bank. Bank A was not notified of the assignment Bank Agave notice to the confirming bank that the LC was forged and refused payment. It also stated in its response that the confirming bank should have delayed payment till the maturity date, before which the fraud would have been discovered. Bank A claims that it did not ask the confirming bank to discount or give value to the documents before the maturity date. The L/C was subject to UCP 600. Questions 1. Should Bank A pay the confirming bank? Why/why not? 2. Would the outcome be different if Bank A issued an acceptance L/C