Heritage Housing Corp. v. Ferguson

Appellant has moved for leave of court to file a letter of credit in lieu of supersedeas bond. The issue presented is whether a letter of credit may be filed in lieu of a surety bond pursuant to rule 14c of the Texas Rules of Civil Procedure. We deny the motion on the ground that a letter of credit is not a “negotiable obligation” within that rule.

On August 12, 1982, the trial court set a supersedeas bond in the amount of $50,000. Instead of filing a bond appellant now seeks leave to file an irrevocable letter of credit in the same amount. The letter of credit was issued by the Republic Bank…