Contrasting UK and US views of the controversial Banco Santander case

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Posted in DC-Pro on May 7, 2001 at 4:21:40 AM
In the Santander case, the judges opined that Santander discounted the documents to discharge its own debt as a confirming bank under the credit. But in fact, by such discounting, it had also simultaneously discharged the debt of the issuing bank, because the beneficiary, after receipt of the payment from the confirming bank, would not claim payment from the issuing bank.
So although there were two obligators for payment in the same LC (the issuing bank and the confirming bank), after discounting, the confirming bank had ...

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