Mayhill Homes Corp. v. Family Federal Savings & Loan Ass'n

Shaw, Judge:

Respondent Mayhill Homes Corporation brought this action against appellant Family Federal Savings and Loan Association to enforce a financing arrangement under the letter of credit provisions of the Uniform Commercial Code, S. C. Code Ann. Sections 36-5-101 to -117 (1976). The trial court enforced the arrangement based on contract principles. We reverse.

Nat Hill Homes, Inc., a general contractor, contracted to buy a house package from Mayhill, a manufacturer of prefabricated houses. Nat Hill obtained financing to erect the house from Family Federal. On September 3, 1980, Family…