Philippine National Bank v. Bowring & Co.

On September 28, 1920, defendant signed an application to plaintiff for a letter of credit on Manila in. favor of De Poli for $150,000. Drafts were to be drawn with documents attached, but by the so-called “ red clause ” the bank was authorized “ to advance to the beneficiary such cash as may be required to the extent of Ninety Thousand Dollars ($90,000.00), U. S. Currency, to pay for the merchandise, taking his receipt stating that the merchandise is to be shipped in accordance with the terms of the Letter of Credit, and the relative documents handed to you when completed, advances with…