Hanil Bank v. Perseroan Terbatas Bank Negara Indonesia
United States District Court for the Southern District of New York
No. 96 Civ. 3201, 41 U.C.C. Rep. Serv. 2d 618 (2000)
Relevant factsFree
Bank Negara Indonesia (BNI) (defendant) issued a letter of credit intended to benefit Sung Jun Electronics, but mistakenly named the beneficiary "Sung Jin Electronics." Sung Jun sold the letter to Hanil Bank (plaintiff), which submitted documents to BNI for payment; BNI refused payment because the documents, referencing Sung Jun, did not strictly match the letter's stated beneficiary, Sung Jin. Hanil sued, arguing the misspelling shouldn't excuse payment, and the parties cross-moved for summary judgment.
IssueFree
Whether documents submitted for payment under a letter of credit must strictly comply with the requirements of the letter.