- 22 -
On or about July 1, 1986, Bangkok Bank LA branch renewed its
outstanding $150,000 loan to Radcliffe and that renewed loan was
due on June 30, 1987.13 By letter dated June 26, 1986, peti-
tioner requested on behalf of Radcliffe that Bangkok Bank HK
branch reduce its then outstanding standby letter of credit to
$150,000 and renew it to June 30, 1987. Bangkok Bank HK branch
complied with that request by amending its standby letter of
credit to reduce it to $150,000 and renewing the amended $150,000
letter of credit to June 30, 1987.
On January 14, 1987, the outstanding $150,000 loan balance
was repaid. On or about March 3, 1987, Bangkok Bank HK branch
canceled its outstanding $150,000 standby letter of credit with
respect to that loan.
For the period that commenced on May 16, 1986, the date on
which the BB Loan No. 1 first renewal was due, until January 14,
1987, the date on which the then outstanding $150,000 loan
balance was repaid, interest on the then outstanding balance of
12(...continued)
to $150,000. We accept the parties' agreement on this point for
purposes of our Opinion, even though the record does not estab-
lish whether (1) Bangkok Bank HK branch applied $450,000 of its
then outstanding standby letter of credit to reduce the then out-
standing $600,000 loan balance to $150,000 and immediately there-
after reimbursed itself with the Intercontinental $450,000 depos-
it or (2) the Intercontinental $450,000 deposit was directly
applied to reduce the then outstanding balance of that loan to
$150,000.
13 The record does not disclose the terms of any renewal after
the BB Loan No. 1 first renewal became due on May 16, 1986, and
before it was renewed in a reduced principal amount on or about
July 1, 1986.
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