The Research On The Legal Problem Of Outward Bill On L/C In Risk Precautions

With the globalization of international economy, letter of credit count-up mode has become the main payment instrument of international trade settlement, and at the same time, the way of international trade financing relating to L/C has developed quickly. The article discusses the law system and actual practice of Outward Bill financing on L/C. By means of combining theory and practice, the author makes clear the legal relationship about Outward Bill on L/C, putting up some designs of systems creatively, with intention of providing some suggestions for our commercial bank business in taking risk precautions, and promoting our country's legislation in the related field.The article is divided into five chapters, every part go forward one by one, analyzing the theory and practice of our country's Outward Bill on L/C successively.The first part is the preface, analyzing the writing background and the practical meaning. The second part begins with the concept of mortgage, then leads to the legal system of Outward Bill on L/C, analyzing the legal features of Outward Bill on L/C, the author holds Outward Bill on L/C one kind of financing action, and it can be explained that the exporter signs the General Letter of Hypothecation with domestic bank as hypothecation according to the integrated documents according with the demands of L/C. Then the bank pays for exporter the L/C fund to a certain proportion according to the General Letter of Hypothecation. The relationship between the parties of Outward Bill is one kind of debit and credit connection by contract, the General Letter of Hypothecation is the basic legal file on rights and obligations of the contract parties, and the legal foundation is some related provision about domestic laws such as Contract Law, Guarantees Law, and Civil law General. Then comparing the Outward Bill on L/C with some other types of international trade financing ways selectively, such as Inward Bill,Negotiation and Packing Loan, through comparison, acquire a better understanding in the legal relationship of Outward Bill and straighten up the real connotation of this system design. The third part analyses the operation rules of Outward Bill in some commercial bank in our country currently, and accordingly the writer has made some comments so as to bring forward one kind of system design in universal significance by comparing the operations among some commercial banks which can become normal and harmonious in operation. The fourth part discusses the risk of Outward Bill on L/C. Banks are faced with many risks in the operation of Outward Bill on L/C, mainly including three aspects.