diff --git a/src/TemplateBinding.js b/src/TemplateBinding.js
index f2851bf..8d32284 100644
--- a/src/TemplateBinding.js
+++ b/src/TemplateBinding.js
@@ -1006,13 +1006,14 @@
         return;
 
       var template = this.templateElement_;
+      var delegate = template.bindingDelegate;
+
       if (!template.parentNode || !template.ownerDocument.defaultView) {
         this.close();
         return;
       }
 
       if (this.instanceModelFn_ === undefined) {
-        var delegate = template.bindingDelegate;
         if (delegate && typeof delegate.prepareInstanceModel === 'function')
           this.instanceModelFn_ = delegate.prepareInstanceModel(template);
         if (typeof this.instanceModelFn_ !== 'function')
diff --git a/tests/tests.js b/tests/tests.js
index b41e81c..6672c42 100644
--- a/tests/tests.js
+++ b/tests/tests.js
@@ -1846,8 +1846,43 @@ suite('Template Instantiation', function() {
     assert.strictEqual(1, template3.content.childNodes.length);
     assert.strictEqual('Hello', template3.content.firstChild.textContent);
   });
-});
 
+  test('issue-285', function() {
+    var div = createTestHtml(
+        '<template>' +
+          '<template bind if="{{show}}">' +
+            '<template id=del repeat="{{items}}">' +
+              '{{}}' +
+            '</template>' +
+          '</template>' +
+        '</template>');
+
+    var template = div.firstChild;
+
+    var model = { 
+      show: true,
+      items: [1]
+    };
+
+    div.appendChild(template.createInstance(model, {
+      prepareInstanceModel: function(template) {
+        if (template.id == 'del') {
+          return function(val) {
+            return val*2;
+          };
+        }
+      }
+    }));
+
+    Platform.performMicrotaskCheckpoint();
+    assert.equal('2', template.nextSibling.nextSibling.nextSibling.textContent);
+    model.show = false;
+    Platform.performMicrotaskCheckpoint();
+    model.show = true;
+    Platform.performMicrotaskCheckpoint();
+    assert.equal('2', template.nextSibling.nextSibling.nextSibling.textContent);
+  });
+});
 
 suite('Binding Delegate API', function() {