CopyCited 18 times | Published | Court of Appeals for the Eleventh Circuit | 10 U.C.C. Rep. Serv. 2d (West) 1330, 1990 U.S. App. LEXIS 2294, 1990 WL 6919
...ne; rather, the bank's only duty is to examine the documents on their face to determine that the description of the goods on the face of the bill of lading conforms exactly to the description recited on the face of the letter of credit. See id. Sec. 675.114(1)....
...More importantly, however, the bank is also immediately entitled to reimbursement from its customer for the amount of money disbursed to the beneficiary, unless the agreement between the bank and the customer otherwise provides. See Fla.Stat. Sec. 675.114(3)....
...This exception arises when the customer discovers and informs the bank that the beneficiary has engaged in forgery or fraud. Even in such a situation, however, the bank has the right to honor the letter of credit if it chooses to do so, see Fla.Stat. Sec. 675.114(2)(b), and in fact the bank must honor the letter if presented by another bank which has status as a holder in due course, see id. Sec. 675.114(2)(a) 5 The parties do not dispute the facts; rather, they dispute the facts' legal significance 6 Although Camilo Bautista's initial request for the letter of credit, the loan committee's memorandum, and the letter of credit application all...
...e whether or not the beneficiary has fulfilled his obligation to the buyer and whether or not the goods are sufficient security, the bank has the duty, absent fraud, to pay on its letter of credit if the documents conform on their face. See id. Sec. 675.114....
CopyCited 10 times | Published | Florida 3rd District Court of Appeal | 14 Fla. L. Weekly 1564, 1989 Fla. App. LEXIS 3606, 1989 WL 68939
...one of laying the instruments next to one another and determining whether they precisely coincide. See also United States v. Sun Bank,
609 F.2d 832 (5th Cir.1980); Pringle-Associated Mortg. Corp. v. Southern Nat'l Bank,
571 F.2d 871 (5th Cir.1978). Section
675.114(1), Florida Statutes (1987) specifies that an issuing bank must honor drafts or demands for payment under a letter of credit when the documents required by the letter of credit appear on their face to comply with the terms of the credit. An exception to the bank's obligation to honor an apparently conforming draft or demand for payment occurs when a required document is "forged or fraudulent or there is fraud in the transaction." §
675.114(2), Fla....
CopyCited 9 times | Published | Florida 3rd District Court of Appeal | 10 Fla. L. Weekly 735
...See §
675.109(2), Fla. Stat. (1981). Since the documents received were in compliance with the requirements of the letter of credit, Intercontinental was required to honor the demand for payment made by Banco Hispano Americano through which Griferia had made demand. §
675.114, Fla....
...(1981). See Fidelity National Bank. The fact that Intercontinental was aware of the ongoing disputes between Braun and Griferia concerning their contract did not alter, or relieve it from carrying out, its obligation to honor the demand for payment. See § 675.114, Fla....
...incide. [citations omitted] Fidelity National Bank,
371 So.2d at 548. Since Intercontinental duly honored the demand for payment it was entitled to immediate reimbursement through liquidation of the certificate of deposit Braun posted as collateral. §
675.114(3), Fla....
CopyCited 7 times | Published | Florida 3rd District Court of Appeal | 12 Fla. L. Weekly 2108
...Dade County,
371 So.2d 545 (Fla. 3d DCA 1979). Absent fraud, once the beneficiary presents the requisite documents to the issuing bank, the bank must honor the letter of credit regardless of any dispute between the bank's customer and the beneficiary. Braun; Fidelity Nat'l Bank; §
675.114(1), Fla....
...An issuing bank is only required to perform the ministerial task of "laying the instruments next to one another and determining whether they precisely coincide" with those mandated by the terms of the letter of credit. Fidelity Nat'l Bank,
371 So.2d at 548; accord Braun,
466 So.2d at 1130; see §
675.114(1), Fla....
CopyCited 4 times | Published | Florida 4th District Court of Appeal | 2004 WL 1933124
...On April 1, 1999, United Mizrahi presented the conforming documents to NationsBank, along with the $229,665.60 draft. On April 8, 1999 Daiwa obtained a temporary injunction from the circuit court prohibiting NationsBank from releasing the funds. See § 675.114(2)(b), Fla....
...The dissolution issue was tried in March 2003. As framed in the circuit court and this appeal, the primary issue is whether United Mizrahi was a holder in due course of the $229,665.60 draft. If United Mizrahi was a holder in due course, then it was entitled to payment under section 675.114(2)(a), Florida Statutes (1997), which provides, in pertinent part: (2) Unless otherwise agreed when documents appear on their face to comply with the terms of a credit but a required document......
...Electronic components for making thermometers were kept in a storage area. SAAT's general manager and employees were on-site and working. From his observations, the bank's employee concluded that SAAT's plant was "fully functional" on March 16, 1999. Section
675.114(2)(a) adopts the definition of "holder in due course" contained at section
673.3021, Florida Statutes (1997)....
...participated in a manipulation of documents in order to get paid under a letter of credit. On the cross-appeal, we agree that the trial court erred when it failed to award prejudgment interest. Daiwa obtained the preliminary injunction authorized by section 675.114(2)....
...ge Digital Sys., Inc. v. Digital Imaging Servs., Inc.,
870 So.2d 111, 116 (Fla. 2d DCA 2003). Also, a court may increase or decrease an injunction bond if its initial estimation of damages appears to be incorrect. When a preliminary injunction under section
675.114(2) prevents payment under a letter of credit, the most foreseeable damage is the loss of use of the money withheld, which is measured by prejudgment interest....
...As the supreme court held in Parker Tampa, damages caused by a wrongfully issued injunction are limited to the amount of the injunction bond. Id. Cromwell v. Commerce & Energy Bank of Lafayette,
528 So.2d 759 (La.Ct.App.1988), provides an example of an award of prejudgment interest for the wrongful issuance of a section
675.114(2) injunction....
...In that case, the trial court granted injunctions to stop issuing banks from honoring drafts drawn on letters of credit. Id. at 760. The injunctions were issued under the Louisiana Revised Statutes Annotated, Title 10, section 5-114, which is identical to section 675.114....
CopyCited 4 times | Published | Florida 3rd District Court of Appeal | 15 U.C.C. Rep. Serv. 2d (West) 208, 1991 Fla. App. LEXIS 5650, 1991 WL 104631
...l Bank of South Miami v. Dade County,
371 So.2d 545, 548 (Fla. 3d DCA 1979) and cases cited therein. If the bank determines that the documents presented by the beneficiary conform to the credit, the bank is obligated to honor the demand for payment. §
675.114(1), Fla....
...Presidential Fire & Casualty Co.,
549 So.2d 197, 198 (Fla. 3d DCA 1989), review dismissed,
557 So.2d 867 (Fla. 1990). An exception to the bank's duty to honor the demand occurs if apparently conforming documents are "forged or fraudulent or there is fraud in the transaction." §
675.114(2), Fla....
...Tandy,
481 So.2d at 926 (citations omitted). This exception is a very limited one. See Tandy,
481 So.2d at 927; B.G.H.,
549 So.2d at 198; Harfield, Letters of Credit 75-79. If a fraud is being perpetrated, the trial court may enjoin the bank from honoring the letter of credit. §
675.114(2)(b), Fla....
...the issuer cannot assert them as defenses against the beneficiary. J. White and R. Summers, Uniform Commercial Code 9 (3d ed. 1988). [5] Some commentators assert that injunctive relief is not available in such circumstances. It could be argued that section 675.114(2)(b) authorizes injunctive relief only in the circumstances there stated....
CopyCited 2 times | Published | Florida 3rd District Court of Appeal | 31 U.C.C. Rep. Serv. (West) 650
...the beneficiary of that letter is not that of debtor and creditor so as to give the court where the issuer is located jurisdiction of a res upon which its judgment could operate, controls the present case, notwithstanding the subsequent enactment of Section 675.114(2)(b), Florida Statutes (1979), which authorizes "a court of appropriate jurisdiction" to enjoin the honoring of a draft under circumstances arguably similar to those alleged by Kinsler, since this statute, while authorizing the remed...
CopyPublished | Florida 1st District Court of Appeal | 14 Fla. L. Weekly 2279, 9 U.C.C. Rep. Serv. 2d (West) 1036, 8 A.L.R. 5th 982, 1989 Fla. App. LEXIS 5397, 1989 WL 113231
...ssume the additional risks of litigation. Insurance Company of North America v. Heritage Bank, N.A.,
595 F.2d 171, 176 (3d Cir.1979). Although the trial court cited Fidelity, its holding was not followed. As noted by the Third District in that case, section
675.114(1) provides that an issuer "must honor a draft or demand for payment which complies with the terms of the relevant credit......
