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| TITLE | Supreme Court Decision 2008Da88337 Decided January 13, 2011 [Payment for Letter of Credit] [full Text] |
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| Summary | |
| [1] Whether an instructiongiven by a bank issuing an irrevocable letter of credit to a designated negotiating bank which effectively altered the actual rights of a beneficiary or the requirements for the exercise of such rights is valid [2] Where a bank issuing an irrevocable letter of credit notified, through an instruction, a negotiating bank to delete additional conditions but the beneficiary refused this request, the court below's ruling that deletion of the above additional condition constitutes a modification to the conditions of the letter of credit and that, with the beneficiary refusing this request, such instruction to the negotiating bank to delete additional conditions is invalid is affirmed [3] Whether a bank issuing a letter of credit can refuse payment of a letter of credit on the grounds of a newly asserted defect after the time period stipulated by Article 14 d. i. of the fifth revision of the Uniform Customs and Practice for Documentary Credits has expired (negative) [4] Where, in accordance with additional conditions of the letter of credit, a negotiating bank received a letter of indemnity issued by the beneficiary in lieu of a bill of lading and used it to purchase a bill of exchange to claim for payment of a letter of credit upon the issuing bank, the court below's determination is affirmed that the issuing bank may not refuse payment for the letter of credit merely because the consignee of the letter of indemnity is not the issuing bank [5] The principle of strict compliance regarding the contents of a letter of credit and examination of its conditions, and exceptions to the principle of strict compliance ... | |
