Hong Kong Case Law: Decisions & Judgments | LexChat

Topic

Valuable security

Legal area

Court

29 Oct 2001

CHIU YU MAN & OTHERS v. HKSAR

Citation

CHIU YU MAN & OTHERS v. HKSAR
Court

Court of Final Appeal
Case number

FACC2/2001

An irrevocable letter of credit falls within the second limb of the statutory definition of "valuable security" as a document authorising the payment of money, and the signing/issuance of such an irrevocable credit by a bank officer constitutes "execution" under s.22(3); therefore the letters involved were executed valuable securities and the convictions are upheld.
12 Oct 2000

HKSAR v. CHIU YU MAN AND OTHERS

Citation

HKSAR v. CHIU YU MAN AND OTHERS
Court

Court of Appeal
Case number

CACC577/1999

The Court held that irrevocable documentary letters of credit constitute "valuable securities" within the meaning of s.22(4) because they create an obligation on the bank and a corresponding chose in action (a right to payment) in the beneficiary; the deputy judge was entitled to draw compelling inferences from fund‑flow and documentary evidence to conclude the underlying transactions were bogus; accordingly leave to appeal against convictions was granted but the appeals were dismissed.