Financing Through Usance L/C With False Trade Contract And Fraud By L/C

Beginning with the phenomena of financing through usance L/C with false trade contract, I analyse some issues on this way of financing, contend that it was wrong to convict the defendants of fraud by L/C, because it is an abuse of L/C. At last I advanced some prevention and cure measures.In Chapter 1 I analyse the status quo of financing through usance L/C with false trade contract and fraud by L/C. The status quo includes these aspects primarily. The so called frauds concerned enormous sums; the defendants who lacked money could not finance their businesses through other ways; all of these finacings were done before 1997; the defendants always confessed to the facts of financing, but traversed the indictments; the issuing banks suffered loss that should be sufferd by others; the issuing banks violated the rule of prudence, some of which even committed crimes; the rulings and the verdicts of the courts destroyed the abstraction of the credit promise.In Chapter 2 I expound the basic knowledgements of L/C. This chapter contains the definition and the operation of L/C, the the abstraction of the credit promise, relationship in the usance L/C customs and practice, the financing function of the usance L/C, the means, operations and the key steps of financing through usance L/C with false trade contract and the other uses of usance L/C. In Chapter 3 I discuss the legal positions and interest of all parties. I distinguish the latency victim from the real one and analysed how the faults of issuing bank, warrantor and import agenciy affect the defendant.In Chapter 4 I discuss the criminal substantive law concerning financing through usance L/C with false trade contract. In the first part I contend that the financing has no illegitimacy and the defendant can not be found guilty because in credit operations all parties concerned deal in documents, and not in goods, services and/or other performance to which the documents may ralate and the ordinance of Central Bank can neither track back nor apply to the defendant. In the second part I analysed the elements of fraud by usance L/C. The third part of this chapter is on how to judge and caculate the loses. I tell the differences between the financing and the fraud through a case concerning the spacial validity of criminal law in the last part of this chapter.In Chapter 5 the criminial procedure law is discussed. In the first and second part I expound the problems on civil procedure suspension or termination to start a criminial procedure. The third part is on the injunction to suspend or terminate the acceptance or/and payment. Finally, I contend that the connections between the criminial and the civil procedures should be improvedThe Chapter 6 is on how to determine the nature of the financing through usance L/C with fasle trade contract. I analyse the spirits of a notification of State Council in the firt part. Compared the civil fraud with the crime, the false trade contract and fraud, the finacing with fraud in the second to the fifth part, I contend that the financing through usance L/C with false trade contract is not a crime but a documentary credit abuse. The influences of accusation are expounded in Chapter 7. The accusation will damage the interests of the issuing banks and the abstraction of the credit promise. The balance of parties will be upsetted through the accussation. The operation of L/C will also be badly impacted.The aetiology in Chapter 8 contains three parts, which are why the importer finance their businesses through usance L/C with false trade contract, why the importers are accused and why the cases are wrong judged or ruled.Prevention and cure measures are advanced in the last chapter of this dissertation.