Barclays Bank D. C. O. v. Mercantile National Bank

INGRAHAM, Circuit Judge:

This appeal has its birth in an action against Mercantile National Bank for dishonor of a draft drawn under a letter of credit issued by Allied Mortgage Consultants, Inc., in favor of Bar-clays Bank D.C.O. Mercantile’s liability is premised on the theory that it confirmed Allied’s credit, thereby becoming directly liable on the credit under § 5-107(2) of the Uniform Commercial Code as adopted in Georgia. 1 The broad legal issue, and a question of first impression, presented by this Georgia diversity case is whether under the Uniform Commercial Code a bank can attain…