Is the issuer bound to pay the beneficiary complies with the terms of the letter?

Yes, the issuer is bound to pay the beneficiary, provided that the beneficiary complies with the terms outlined in the letter of credit. This obligation arises from the principle of independence, where the issuer's duty to pay is based solely on the documents presented, not on the underlying contract. Therefore, if the beneficiary meets all specified conditions and presents the required documentation, the issuer must fulfill the payment obligation.