Maurice O'Meara Co.v.National Park Bank of New York involved a letter of credit for a shipment of newsprint.The bank was concerned that the shipment was not as represented in the documents.In finding in favor of the seller's assignee,the court:

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The court emphasized the independence principle in letter of credit transactions. This principle states that the obligation of the bank to pay the beneficiary of a letter of credit is independent of the underlying contract between the buyer and seller. Therefore, the bank cannot refuse payment based on issues with the underlying contract, as long as the documents submitted by the beneficiary comply with the terms of the letter of credit.