Research On The Examination Principle Under L/C And The Bank's Examination Obligation

The Compliance Principle is a matter of the .scope of practice, while the Bank's examination obligation is a legal concept. To decide the relationship between the Compliance Principle and the Bank's examination obligation, we must first understand the Compliance Principle in the legal view. Although the legal system of different countries varies, UCP500 is generally accepted and applied by international banks, and respected by Judiciary. Through historical and comparative approach, based on L/C related Publications of ICC, this essay is a study on the development of the Compliance Principle and the relationship between bank's examination obligation and the examination principle.Through the analysis of answers to queries about compliance of L/C and documents by the ICC Banking Commission, and the analysis of the interpretation and measure of "compliance on their face" in concrete judicial case, it can be concluded, the comprehension of "compliance on their face" transferred from strict compliance to substantial compliance. In the process, the bank's examination obligation has increased little by little, and "de minimis non cur at lex" reaches equilibrium with "de minimis still important to bank". This trend confirmed to commercial reality and the change of Civil Law philosophy.To set up the Compliance Principle, we should learn from the flexible approach of Common Law and establish judicial review standard.