Study On The Law Of Standby Letter Of Credit

Today, with the diversified and complex tendency of international trade activities, the guarantee system emerges as the potential risks which the creditors may face requires. Compelled with the normal letter of credit and the letter of indemnity, the standby letter of credit is a kind of bank guarantee in the letter of credit form essentially. It not only can be used as the letter of credit, but also strengthens its guarantee function.After entering WTO, following the flow of international capital item and the high speed increase of inside standby letter of credit transaction, whether to establish and improve our special administration regulations and rules related of the stand-by credit letter has become the neck influencing our international economic trade contacts. The system of the standby letter of credit is the key of this paper, which is stated by comparatively analytical method, inductive method and the method of integrating the theory with practice. The origin, nature, function and the related international regulations and the international conventions of the standby letter of credit are introduced in this paper. And combined with the current situation of the domestic law, how to perfect the relevant law is inquired and the detail proposals are put forward.