| Restrained in the legal stipulation, US's banking circles in order to compete with other local bank in the world effectively established the standby letters of credit. It grew from the traditional commercial letter of credit, and inherited the characteristics of the letter of credit, independence principle and strict compliance standard and so on. As a kind of new guarantee, the characteristics which it was in sole possession of has conformed to the economical development and each kind of economical parties'demand, thus came with infinite vigor, and the scope also expanded from the domestic transaction to the international transaction, developed from the support for the guarantee to finance debt to supports for the fulfillment of many other kinds of debts.The engineering project is a kind of complex and the high risk economic activity. Complexity is inherent in construction, and the risks on a project are staggering, including design errors, physical risks, social risks and so on. Contractor's insolvency and the cheat especially attacked the project owners greatly in the multitudinous risks. So in order to protect themselves, the project owner also introduced such economical method as guaranteed except the legal method. It was already 100 years history for the overseas project guarantee system, and the market economy developed countries had all established the project guarantee system. In American, more than 100 surety companies issued the guarantees amounted to 290,000,000,000 US dollars every year. The standby letters of credit as the American finance innovation product also expanded its own scope to the project guarantee domain. By the introduction of standby letters of credit, the discussion of its principle of law, and comparison of it with the performance bonds, this paper proposed the suggestion to complete projects guarantee system and standby letters of credit system, and hoping it will do some good to the legislation related to the issues above. |
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