DCW maintains a list of recently-decided court cases involving commercial letters of credit, standby LCs, demand guarantees, and other trade
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This month we’re digging into the legal, operational, and regulatory tensions at the core of LC and guarantee practice.
Landlord sued Lessee for use and occupancy of commercial lease.
To support commercial rent obligations, Soho Office Suites, LLC (Lessee/Applicant) applied for and obtained a USD 449,895.85 letter of credit in favor of Majestic Rayon Corp. (Landlord/Beneficiary).[[1]] No details were provided regarding the LC issuer or whether the credit was subject to practice rules. Pursuant to the lease, Lessee/Applicant was also required to replenish “upon ten days’ notice” any sums drawn down by Landlord/Beneficiary in the event of lease defaults.
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