sic itur ad astra

  Bernardo E. Villaluz agreed to sell 2,000 cubic meters of lauan logs at $27.00 per cubic meter to Axel Christiansen. Hanmi Trade Development, Ltd., de Santa Ana, California arranged for an Irrevocable Letter of Credit No. IC-46268 for $54,000.00 in favor of Villaluz, issued by Security Pacific National Bank of Los Angeles, California. The letter of credit was sent to Feati Bank and Trust Company (now Citytrust) with instructions to forward it to Villaluz. Feati Bank refused to negotiate with Villaluz due to the absence of a required certification from the buyer, Axel Christiansen. Villaluz filed a complaint for mandamus and specific performance against Christiansen and Feati Bank, seeking payment under the letter of credit. Is FEATI Bank liable under the letter of credit despite non-compliance by the beneficiary with the terms thereof? No FEATI Bank is not liable.  The letter merely provided that the petitioner "forward the enclosed original credit to the beneficiary." ...

  When are letters of credit consummated? Belman Compania Incorporada , having successfully bid to supply the Republic of the Philippines with 1,000 reams of onion skin paper, applied to the Philippine National Bank (PNB) for a $4,300 letter of credit on 21 September 1950. PNB, through its correspondent Crocker First National Bank, paid $4,300 to Getz Bros. & Co., the payee. Belman Compania Incorporada paid its account to PNB, which assessed and collected a 17% special excise tax (P1,474.70) under Republic Act No. 601. Belman Compania Incorporada protested the tax, arguing it was not applicable since the letter of credit was granted before the law's enactment on 28 March 1951. Belman Compania Incorporada demanded a refund from PNB, which was refused despite repeated demands. Belman Compania Incorporada filed a complaint seeking a court declaration that the tax was illegal and a refund of P1,474.70. CFI-Manila: Ordered PNB to refund P1,474.70 plus legal interest from 25 April 1...