Reflections On Letter Of Credit Fraud Exception

With the widespread application of Letter of Credit in the international finance and trade, judicial cases of Letter of credit fraud have correspondingly increased in recent years. The thesis briefly analyzes major principles of Letter of credit, causes of Letter of credit fraud and essential conditions for the application of fraud exception. Besides, it explores some problems in our judicial practice on the basis of the preliminary comparison with the judicial remedies of Letter of credit fraud at home and abroad.Beginning with the introduction, the thesis briefs the importance of Letter of credit in the field of finance and trade together with the concept of independence principle which guarantees the quickness, reliability, economy and convenience of Letter of credit. It simultaneously points out that the independent principles of Letter of credit have left space for those unscrupulous people. Consequently, it deserves serious reflections on how to enhance the research on Letter of credit fraud and its judicial remedies and how to keep away from Letter of credit fraud.The first part introduces concisely the legal features of Letter of credit, and characteristics of Letter of credit mechanism. The system of Letter of credit provides security for both buyers and sellers. It forms the basis upon which banking institutions extend credit facilities to the various parties in such transactions. The doctrines of the independence principle of Letter of credit require that the submitted documents comply strictly with terms of...