BENNETT V GERLING GLOBAL REINSURANCE CORPORATION and FIRST INTERSTATE BANK

(1992) 1 Re LR 344

United States Montana District Court

Before District Judge Leisure

Insolvency - Preference - Letters of credit issued by bank on behalf of reinsurer - Practice of securing letters of credit by certificate of deposit - Purpose of letter of credit to ensure that reassured’s sight drafts against reinsurer were paid - Reinsurer insolvent - Whether liquidator or reassured entitled to proceeds of letter of credit.