Article

Specific Fund

Note: Applicant requested an LC valued at US$ 818,000 for the purchase of garlic from beneficiary. When the garlic arrived, it was rotten and not of a merchantable quality. Applicant issued a writ and statement of claim and obtained an ex parte order restraining the issuer from making payments to beneficiary, and, pursuant to a default judgment, the LC was canceled. The issuer took no position on these questions. Subsequently, the default judgment was set aside and the beneficiary was given leave of court to file a Statement of Defense and counterclaim. In its counterclaim, the beneficiary sought an order compelling issuer to make the LC payments under local rules.

The court denied the beneficiary's application for an order to compel the issuer to pay LC funds into the court, reasoning that there was no specific fund, which would have been required to compel payment.

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