First Arlington National Bank v. Stathis

How courts have described this case

Verbatim parenthetical descriptions written by other courts when citing this decision. Ranked by citation-network relevance.

• the issuer of a letter of credit is not permitted to assert any defenses which the beneficiary may have to the underlying contract when presented with a proper demand for payment
• the threshold question in a letter of credit case is whether the issuer can properly look beyond the documents required to be submitted to draw on the letter of credit and instead to the agreement between the applicant and the beneficiary
• the fraud exception is narrowly tailored to instances of fraud in which the wrongdoing of the beneficiary vitiates the entire transaction such that the independence principle would no longer be served; the fraud must be fraud in the factum, and not fraudulently calling the letter of credit

Source: CourtListener parenthetical corpus (CC0).