Itek Corporation v. The First National Bank of Boston, Bank Melli Iran

BREYER, Circuit Judge.

The First National Bank of Boston (“FNBB”), at the request of Itek Corp., issued several letters of credit running in favor of Bank Melli Iran (“Melli”). Melli demanded payment from FNBB of the money that the letters promised. Itek obtained a federal district court injunction (see 12 U.S.C. § 632) prohibiting FNBB from paying Melli, 566 F.Supp. 1210. Melli, the true party in interest, appeals. The basic question that Melli’s appeal presents is whether its effort to obtain the money by calling the letters is “fraudulent.” We find the district court’s affirmative answer to…