The Independence principle:

a) Applies in only irrevocable letters of credit.

b) Requires that the buyer's bank is "independent" from the seller and has no banking relationship that may affect its conduct in handling the LOC.

c) Means that the price for the LOC must be verified as "reasonable" by an independent expert.

d) States that the bank's obligations under the LOC are separate from any issues arising between buyer and seller, e.g., warranty claims.