Fina Supply, Inc. v. Abilene National Bank

WALLACE, Justice.

This case concerns an irrevocable documentary letter of credit issued by Abilene National Bank in favor of Fina Supply, Inc. Fina entered into an oil exchange agreement with Brio Petroleum, Inc. Abilene National Bank’s letter of credit No. 1342 was issued to assure Fina that it would receive payment for any excess shipments of oil made to Brio as a part of their exchange agreement. When Fina attempted to draw under the letter of credit, its draft was dishonored. Abilene National Bank sought a declaratory judgment that it was not liable to honor Fina’s draft because the…