The court awarded the Beneficiary damages in the amount of the Beneficiary's sight draft
of $207,885, presented to the issuing bank, together with interest.
The LC Beneficiaries commenced suit against the issuing bank, claiming the bank had wrongfully dishonored the sight draft
they had presented.
Hamilton's review of the books led him to conclude that the "sales of vehicles supposedly reflected by the sight drafts
, title certificates and accompanying materials were wholly fictitious.
Amwest was entitled to payment of the letter of credit because it had presented the sight draft
and certification required by the letter of credit.
The advantages of sight draft
terms to the importer are that they don't pay for the goods until the product arrives and it is less costly than an L/C.
Once approved, KeyBuy financing includes a Sight Draft
(which works like a check) that the customer can take to the dealer.