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When a bank issues a letter of credit (L/C), it provides a guarantee of payment to the seller as long as they present the required documents as specified in the L/C terms. The independence principle of letters of credit means that the bank’s obligation to pay is generally separate from any disputes between the buyer and seller regarding the quality of goods or services.

The correct statement is that the bank must make payment and is entitled to immediate reimbursement from the buyer. This is because, in the context of an L/C, the bank is only concerned with the documentation it receives, not the actual quality of the merchandise or any disputes that may arise afterward. Once the seller provides the necessary documents that comply with the terms of the L/C, the bank is obliged to release the payment to the seller. Following the payment, if the buyer disputes the transaction, their recourse lies in seeking compensation or resolution from the seller, rather than affecting the bank's obligation to pay based on the presented documents.

Understanding this mechanism is crucial for ensuring smooth transactions in international trade and finance, as it protects the seller while placing the onus of dispute resolution on the buyer. This clarity ensures that the financial operations of banks and the trust in letters of credit are maintained.