Drawing on the China case, Luoyang Aviation, Saibo Jin examines the relationship between the transferred credit and the original credit.
Banks that handle collections must not neglect the product and have proper controls in place to deal with the risks.
In the latest installment of his article series on originality of paper and electronic documents, Pavel Andrle addresses practical use of the current ICC rules and matters he believes need clarified to better facilitate use of electronic records in trade finance.
Lessee sued Lessor/Owner Trustee for breach of contract and conversion.
North American Airlines, Inc. (Lessee) leased a Boeing 767 airliner from Wilmington Trust Company (Lessor/Owner Trustee). During the course of its use, the airliner experienced blade failure and required repairs. One provision of the lease provided that Lessor/Owner Trustee would reimburse Lessee for repairs related to “full performance restoration”, meaning those involving restoration of engine performance (referred to in the opinion as “EGT”).
When Lessor/Owner Trustee refused to reimburse Lessee for repairs while also drawing down a letter of credit provided by Lessee in the event of Lessee’s breach of contract, Lessee sued Lessor/Owner Trustee for breach of contract and conversion. The trial court granted summary judgment in favor of Lessee on both claims. Lessor/Owner Trustee appealed. The New York Supreme Court, Appellate Division, Friedman, Gische, Kapnick, Kahn and Oing, JJ., affirmed.
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