Article

Prior History:  MW Mapleleaf Partners, LLC v. Fifth Third Bank, Inc., No. 5:09-CV-380-KKC, 2010 U.S. Dist. LEXIS 135728 (E.D. Ky. Central Div. Dec. 6, 2010) [USA], noted in 2011 ANNUAL REVIEW OF INTERNATIONAL BANKING LAW & PRACTICE 533

Note: After Fifth Third Bank, Inc. (Issuer) issued LCs totaling US$38,162 on behalf of MW Mapleleaf Partners, LLC (Applicant) in favor of the Lexington Fayette Urban County Government in order to obtain an occupancy certificate for a newly constructed building, a dispute with Issuer arose and a settlement agreement resulted by which Applicant was required to replace Issuer's outstanding standby LCs. When Applicant failed to replace its standbys, Issuer moved to enforce the agreement and the U.S. District Court for the Eastern District of Kentucky, Wier, Magistrate J., ordered Applicant to replace the LCs in order to eliminate Issuer's liability and to deed Applicant's property to Issuer.

Although Applicant deeded property to Issuer, it failed to replace the LCs claiming that it was unable to obtain other standby LCs because, having deeded the property, it had no assets. Instead, Applicant moved to amend the settlement agreement.

The U.S. District Court for the Eastern District of Kentucky, Caldwell, J., denied Applicant=s motion and amended the order enforcing the settlement agreement to state that Applicant must either replace the LCs or otherwise arrange for Issuer to be completely released from all liabilities under the LCs.

[JEB/mcp]

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