Dixon, Irmaos & Cia v. Chase Nat. Bank of City of NY

SWAN, Circuit Judge.

This, appeal raises interesting and important questions as to letters of credit covering C. I. F. shipments abroad. The plaintiff, an exporter of cotton in Sao Paulo, Brazil, contracted to sell cotton to-a purchaser in Belgium. A Belgian bank requested the Chase Bank to issue in favor of the plaintiff two irrevocable letters of credit for $7,000 and $3,500 respectively to finance such sales. Chase Bank did so and mailed them to Sao Paulo, where they were received by the plaintiff on May 2, 194. They bound Chase Bank to honor 90 day drafts drawn under the credits, if…