Itek Corp. v. First National Bank of Boston

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 Mellis appeal presents is whether its effort to obtain the money by calling the letters is "fraudulent." We find the district courts affirmative answer to this question adequately supported. And we therefore affirm its decision to issue the injunction.