On The Exception Principle And Its Application Of Letter Of Credit Fraud

The exception principle of Letter of Credit (hereinafter referred to as L/C) fraud is gradually coming into existence in the development of the legal system of L/C, which is a certain negation of the conventional principles of the legal system of L/C under the circumstances of L/C fraud. However, this kind of negation is not absolute and based on positiveness. The exception principle of L/C fraud is new positiveness in the manner of negation of negation, upon the conventional principles, which is still foundation stone for the function of L/C mechanism.The dissertation makes a discussion on the exception principle and its application of L/C on the basis of the introduction to the conventional legal system of L/C, and commentates on the application of the exception principle of L/C fraud referring to the Provisions of the Supreme People's Court on Some Issues in the Adjudication of Letter-of-Credit-related Cases. The dissertation falls into three parts.Part one, a discussion of the exception principle of L/C fraud, firstly introduces the conventional principles by which the L/C mechanism is brought into function, and then points out that L/C fraud is caused by the deficiency of the conventional principles of L/C, finally deals with the exception principle of L/C fraud established by individual countries to resolve issues arising out of L/C fraud.Part two, comments on the application of the exception principle of L/C fraud, deals with standards and subject of the application as well as the exception of fraud exception and questions the bank right to dishonor L/C, as generally agreed, in the aspects of procedural fairness, judicial judgment and practical significance.Part three, comments on the application of the exception principle of L/C fraud, firstly reviews on legal systems related to L/C fraud before the adoption of the Provisions of the Supreme People's Court on Some Issues in the Adjudication of Letter-of-Credit-related Cases (hereinafter referred to the Provisions) and the course of its coming into existence, makes a comparison between the previous provisions and the Provisions and commentates on the application of the exception principle of L/C fraud in China with regard to application standards, application procedure and exception of fraud exception.The closing part makes a general comment on exception principle and its application of Letter of Credit fraud with the aim to maintain the healthy development of L/C mechanism and considering the actual circumstances of China, on the basis of affirmation of significance of the Provision, points out that the Provision, as a judicial interpretation, has limits in legal force and application scope, as a result, it is necessary for China to regulate L/C fraud and the whole related legal system in the form of legislation.