The Exception System Of A Letter Of Credit Fraud Together With The Legislation And Judicial Practice In Our Country

The Letter of Credit has been used widely in the modern international businesses and trade. But It causes some illegal businessmen to do some cheating activities in the practice by utilizing the feature of abstract independence principle of Letter of Credit. The theories of the exception system of a Letter of Credit fraud comes into being for guarding against a Letter of Credit fraud and defending legitimate rights and interests of party concerned. The exception system of a Letter of Credit fraud is a replenishment of the abstract independence principle of Letter of Credit. So there should be a very elder route to go away about constructing this legal system. There has been nor within minority of judicious precedent in the respect in our country. But also there are many spaces that not rightful, it's indispensable that referencing the developed countries' legislate and judicature practice for developing and improving our legal system of Letter of Credit.The thesis first of all summarized the implication and feature of the Letter of Credit and Letter of Credit fraud, pointes out that the relation of abstract independence principle of Letter of Credit and the exception system of a Letter of Credit fraud and than analyzed the statues of litigant and the situation of application or removing application in the exception system of fraund; Secondly, It expounds the legislation and practice of the exception system of a Letter of Credit fraud in the international from the three respects of the legislation and practice of American and British and the International Chamber of Commerce's stipulation about Letter of Credit, clarifies that American is a leading in the world in the legislation of Letter of Credit, British has rigorous bearing in application of the exception system, and the ICC dodges application as to the system; Once more, Detailedly analyses the regulates of our country about the exception system of a Letter of Credit fraud, which is ,, . And expoundes the present situation of legislation and practice of the exception system of a Letter of Credit fraud by means of uniting the tried programs and finally pronounced of Letter of Credit in our country, proposes that lacked the law about Letter of Credit, failed to understand the standard about the firmly believing the Letter of Credit fraud, lacked the respect of the bona fide third party, was be scarce of judicature programs defending relevant litigant; Finally proposes ,in view of, that our judicature should be improved in much orientation, in the constructing of the legal system of Letter of Credit, the criterion firmly believed in Letter of Credit, the bank fulfilling the right of refuse payment appropriate, and judicature programs of court in trying.The distinguishing feature of this article is that It made a comprehensive and systematic expound and analysis about the legislation and judicature about the exception system of a Letter of Credit fraud at the moment, especially the part of contents is analyzed in the light of the stipulation of UCP600, which is became effective in 1 st July, 2007, so has a very well time efficiency.