Facts
On 10 December 1985, Soprodec SA obtained a seizure order against Rafidain Bank, Baghdad, Iraq, for a claim of CHF 1'771'786 against the Zurich branch of Swiss Bank. This seizure notably included the documents of the documentary credit deposited with the bank. Swiss Bank asserted a right of set-off and retention over these documents. The Debt Collection Office upheld the seizure, but the cantonal supervisory authorities ultimately lifted the seizure on the documentary credit documents.Considerations
The Federal Tribunal considers that when documents provided for in a documentary credit are handed over to the corresponding bank, the bank acquires fiduciary ownership of them, insofar as they have the character of securities. However, as these documents are still held by the corresponding bank, which asserts a right of retention, their realisation is compromised. Furthermore, the claims of the issuing bank against the principal cannot be seized. In these circumstances, a sale of the documents under reasonable conditions is…