Transparent Products Corporation, Plaintiff-Appellant/cross-Appellee v. Paysaver Credit Union, Defendant-Appellee/cross-Appellant

EASTERBROOK, Circuit Judge.

Uncertain of the difference between a line of credit and a letter of credit, the president of Paysaver Credit Union signed this document on the Credit Union’s letterhead:

Transparent Products Corporation

Bensenville, IL. 60101

RE: Thomas Wells

Gentlemen:

We hereby establish our letter of credit at the request of Thomas Wells of 1003 South 23rd Avenue, Maywood and of Titan Tool of 1315 South 3rd Avenue, May-wood up to the aggregate amount of fifty-thousand dollars ($50,000).

At the time Paysaver signed this document, Titan Tool owed Transparent some $33,000 on open account…