the beneficiary presented documents to a nominated bank N under a credit subject to UCP 600 available for deferred payment 60 days after date of bill of lading. negotiation is restricted to nominated bank N.

As bank N is the beneficiary's bankers, the beneficiary requested bank N to examine the documents for compliance. Bank N found the documents compliant and forwarded them to the issuing bank in USA. Ten banking days after receipt of presentation by the issuing bank , there was no notice of refusal received. Two weeks before the payment maturity date, the issuing bank applied for Chapter 11 protection due to lack of liquidity.

On payment maturity date, the beneficiary demanded payment by bank N based on followingreasons

1. Bank N is the nominated bank, having examined the documents and found them compliant.

2. Bank N never showed any intention to refuse the nomination before the payment maturity date

Is bank N obligated to pay the beneficiary?