Opinion ID: 289836
Heading Depth: 1
Heading Rank: 2

Heading: Claim for $68,051.79

Text: 14 Venizelos made an additional claim for the remainder of the amount of the letter of credit, $68,051.79 ($130,625.00 less the $61,973.21 already paid); however, this claim is unsubstantiated as against Chase. Venizelos obtained an arbitration award against Perfiles for more than $150,000 and attempted to levy against Chase for the remaining funds in the letter of credit confirmed by Chase. Venizelos made a vague claim that Chase had funds belonging to Perfiles, but no supporting evidence was presented; there is no evidence that Perfiles had an account on deposit with Chase. Perfiles was a client of Banco, but it was Banco that had its own funds on deposit with Chase, a correspondent bank. Under the credit arrangement between Chase and Banco, Chase could reimburse itself for payments made under the letter of credit by recourse to Banco's account with Chase; however, that does not mean that the funds belonged to Perfiles. The funds of Banco on deposit with Chase were not specifically set aside or earmarked as security for the letter of credit. In essence, Venizelos attempts to turn the letter of credit into an asset unconditionally securing Perfiles' obligations to it, but a letter of credit functions as a security only to the extent that its specific conditions are performed. The only conditions satisfied involved the first and only voyage for which the required documents were presented and payment made (or will be made pursuant to Part I of this opinion). Since the conditions required to be performed for Chase to be obligated on the letter of credit beyond the amount due for expenses on the first voyage had not been performed, Chase was not obligated on the letter of credit beyond the additional $10,624 concerning that initial voyage. Chase has been shown to hold no other asset of Perfiles, and the letter of credit could not be considered an asset in regard to the remaining $68,051.79 until the conditions for payment had been properly performed. Summary judgment was properly granted Chase on this claim since no asset of Perfiles was held by Chase. 15 Reversed for entry of judgment in favor of appellant on the first two claims in the amount of $10,624.29 with interest at the legal rate from November 15, 1965 and costs; otherwise affirmed.