Chuidian v. Philippine National Bank

We must decide whether a bank’s obligation under a letter of credit will be enforced when the performance is legal at the place designated for payment but illegal at the place where the credit was issued. Here, the letter of credit explicitly stated that Chuidian was to present his sight drafts “for payment at the counters of the Philippine National Bank, Los Angeles, 700 South Flower Street Suite 2516 Los Ange-les, CA 90017.” No other place of payment was designated. Moreover, Los Angeles is the place where prior payments had been made.

The majority presents one possible solution. The two…