Toyota Industrial Trucks U. S. A., Inc. v. Citizens National Bank of Evans City v. Promat Corporation

OPINION OF THE COURT

ROSENN, Circuit Judge.

This appeal in a diversity case presents for our consideration two issues requiring interpretation under Pennsylvania law of Article Five of the Uniform Commercial Code dealing with letters of credit. We are asked first to determine whether a particular credit arrangement between a bank and a seller of goods qualifies as a “letter of credit” for Article Five purposes and second, if such a letter of credit exists, whether the seller is required to mitigate any damages it incurs by virtue of a wrongful dishonor of drafts submitted pursuant to the letter…