New Braunfels National Bank v. Odiorne

ON MOTION FOR REHEARING

JONES, Justice.

The opinion and judgment handed down by this Court on September 20, 1989, are withdrawn, and this opinion is substituted for the earlier one.

This appeal presents the question of how strictly a beneficiary of a letter of credit must comply with a condition of the credit in order to require payment by the issuer. New Braunfels National Bank (Bank) filed this suit (1) to obtain a judgment declaring that it had properly refused to honor a draft on a $250,000 letter of credit it had issued, and (2) to obtain an injunction prohibiting, until the parties’ rights…