Aotearoa International Ltd v Westpac Banking Corporation - [1984] 2 NZLR 34

Bankers and banking — Documentary credit — Irrevocable letter of credit — Right of recourse to seller beneficiary — Whether a non-confirming negotiating bank that is not the holder of a valid bill of exchange drawn by the beneficiary has a right of recourse against the beneficiary when the issuing bank refuses to honour the letter of credit — Uniform Customs and Practice for Documentary Credits (1974 rev), art 3.

Bills of exchange, promissory notes and other negotiable instruments — Validity — Unauthorised signature — Ratification — Plaintiff had signed blank bill of exchange — Signed bill incorrectly completed by bank officer and destroyed — New bill completed and signed by another bank officer "pp" the plaintiff — Amount of bill paid into plaintiff's account — Bank later claimed right of recourse against bill — Whether bill was valid — Whether plaintiff had authorised bank to sign bill — Whether plaintiff had ratified the bill — Bills of Exchange Act 1908, ss 23, 24, 25 and 92(1).

Company law — Debentures — Legal costs incurred by bank to protect mortgage security — Whether those costs became an amount owing and secured by a debenture entitling bank to appoint a receiver alleging company was indebted to it.