LUDGATE INSURANCE COMPANY LTD v CITIBANK NA

[1998] Lloyd's Rep IR 221

COURT OF APPEAL

BEFORE LORD JUSTICE BROOKE, LORD JUSTICE MUMMERY AND SIR PATRICK RUSSELL

Letter of credit - Reinsurance - London Market Letter of Credit Scheme - Banks powers - Letters of credits issued by bank for insurance companies secured by cash deposits - Whether bank was wrongly retaining too much collateral in support of letters of credit - Whether bank had reserved right to look to insurer to secure liability of London market pool members - Whether bank entitled to retain in segregated insurers account such additional margin as it considered appropriate in all circumstances - Whether bank had authority under agreement to draw on insurers deposit account for interest.