On Law Application Of Standby Letter Of Credit

If a lawsuit involving international standby letter of credit is lodged to Chinese court, how to fix on the applicable law? If Chinese law should be applied, which laws ought to be used on earth? How is the logic and sequence in the application of these laws? That's the point of this thesis.According to the train of thoughts of solving a lawsuit, the author deploys the idea as following:firstly, make a characterization for dispute of the international standby letter of credit between the issuer and the beneficiary, secondly, in light of the characterization, make certain which country's law should be the applicable law by way of invoking the related conflict rules, thirdly, find out the laws relating to regulate the disputes aboutstandby letter of credit, lastly, list the sequence of these related laws-law applicationsystem.This thesis holds opinion that standby letter of credit bears character of contract and guarantee. According to this qualification, Chinese conflict rules for standby letter credit rely on the first paragraph of article 126 of China Contract Law.The international laws about the standby letter of credit are as follows: United Nations Convention on Independent Guarantees and Standby Letter of Credit;UCP500;URDG;ISP98. There's no domestic special law for standby letter of credit. Only in The Supreme People's Court's regulation of Certain Issues Concerning the letter of credit lawsuit, Guaranty Law and its Judicial Interpretations, Contract Law and its Judicial Interpretations, General Principles of the Civil Law and it's Judicial Interpretations, China Bank Regulation, there are some indirect content.The author ends the thesis by the conclusion that applicable law of international standby letter of credit should be adopted in such a sequence: First is The Supreme People's Court's regulation of Certain Issues Concerning the letter of credit lawsuit, then, Guaranty Law and its Judicial Interpretations→ Contract Law and its Judicial Interpretations, →General Principles of the Civil Law and its Judicial Interpretations, →China Bank Regulation →ISP98→URDG→ UCP500.When resort to this law application to solve some specific lawsuits, China Bank Regulation should to be taken into account first. We ought to follow this law application system to adopt the applicable law. Namely, if there's a law conflict in this sequence, the former one should be applied, and neglect the different part of the later one;if there's no contradiction between them, the late one can be adopted as a supplement.