Study On Legal Issues Of Letter Of Credit Financing

Letters of credit is not only a good payment instrument in international trade, but also a strong finance tool. At present, we have found a few publications on legal issues of the letter of credit financing from the perspective of international financial law. China does not have the relevant laws and regulations on the form of letters of credit financing. Therefore, it will be useful to make a research on such topic on the base of international financial law.Based on the UCP600 and China's existing laws, regulations, judicial interpretations, and actual cases, the thesis analyses deeply legal obstacles and judicial risks from the banks, and researches the nature of the letter of credit, and the mode of financing. From the international economic law, especially a particular point of the international financial law, the thesis studys the legal system of financing construction of letter of credit, which will play a positive role in regulating banks and importers and exporters to conduct their own financing, and studying of the chinese legal problems on letter of credit financing.The preface is the introduction of thesis. Based on the topics background, research priorities and ideas, and the status at home and abroad, the thesis proposes the the necessity and urgency on study of legal and practical issues with respect to letter of credit financing.Chapter I is the outline of the letter of credit financing. This part analyses the development, characteristics, nature and legal relationship of the letter of credit, and studys the function, characteristics, and types of the letter of credit financing, and raises the legal problems on the letter of credit financing.Chapter II focus on the legal problems on the letter of credit financing of importers. This part analyses the legal relationships, judicial bewilderment and practical problems of inward documentary bill, and studys the effectiveness, features and legal risks and preventions of guarantees of delivery for guarantees, and researchs the problems of issuing bonds.Chapter III studies the legal problems on the letter of credit financing of exporters. This part analyses the basic characteristics of outward documentary bill, and distinctions between negotiations and outward documentary bill, and puts forward the existing problems in the Chinese banks to outward documentary bill, and the relevant legal advice.Chapter IV analysis the financing risks and guarantee. This part analyses methods, types and causes of letters of credit frauding and raises the risk measures of prevention and security mechanisms.Chapter V's research is on the construction of Chinese legal system of letter of credit financing. The thesis analyzes the way to unite the Court's attitude to the letter of credit financing, and how to strengthen the Chinese legal system of the letter of credit financing.The last part is conclusion of the research. The conclusion is that the letter of credit financing in China is potential and full of legal obstacles, which is crucial for improving in legal and judical practices.