On 2nd January 2019 Solar Toys Australia (STA) contracted to sell to Taipei Toys (TT), a children's toy store in the city of Taipei, Taiwan, 250 solar-powered walking crocodile toys. The price was AUD 5,000 for delivery FOB Sydney. Since TT was a first-time customer, payment would be by letter of credit.

On 9 January, STA received advice from Austral Bank that China Bank in Taiwan had issued a letter of credit in favour of STA as beneficiary. The letter of credit was payable upon presentation of the beneficiary's bill of exchange drawn on China Bank together with the following documents:

• Commercial Invoice;
• Full set of clean on board negotiable marine bills of lading consigned to order blank endorsed marked freight pre-paid;
• Certificate of origin signed by Australian Customs or its authorized agency;
• Packing list in duplicate.

Austral bank has been authorized to act as advising and negotiating bank.

On 10th January 2019, the goods were loaded on board the ship and a clean bill of lading was issued. The shipping documents together with a bill of exchange drawn on China Bank were presented to Austral Bank on 14th January. On 20th January, Austral Bank indicated that it refused to pay because the documents presented did not conform to the requirements of the letter of credit.

It appears that the problem with the documents is that the bill of lading presented by STA is marked "Freight Collect" instead of "Freight Prepaid" as required under the terms of the letter of credit. In addition, the certificate of origin presented by the beneficiary is signed by an officer of "Aussie Inspections" without any indication that "Aussie Inspections" has any authority from Australian Customs.

When Austral Bank contacted China Bank to request a waiver of the discrepancies, China Bank refused. The reason for the refusal soon became clear - senior executives within TT had absconded with nearly all of the firm's liquid assets, and the firm had been placed in liquidation.

Required:

what are STA's rights, if any, in relation to Austral Bank and China Bank and TT?