Crossroads Bank of Georgia v. State Bank of Springfield

OPINION

FOLEY, Judge.

State Bank of Springfield appeals from a grant of summary judgment entered against it for refusing to honor a letter of credit. We affirm.

FACTS

Respondent Crossroads Bank of Georgia contracted with a Georgia corporation in July 1989 for a loan that was partially secured by an irrevocable letter of credit for $50,000. Springfield issued the letter of credit on behalf of its customer, the Georgia corporation. “A ‘customer’ is a buyer or other person who causes an issuer to issue a letter of credit.” Minn.Stat. § 336.5-103(l)(g) (1988). Before Crossroads could draw on the…