"convention Of The United Nations Independent Guarantees And Standby Letters Of Credit And Urdg, To Ucp500, The Isp98 Study

Independent guarantees and stand-by letters of credit are widely used financial tools of international commerce. Playing important roles in practice, they could strongly ensure that the international commerce perform smoothly. To regulate their use and to change the situation of unclearness and disunity brought by different legal systems, the United Nations Commission on International Trade Law (UNCITRAL) and the International Chamber of Commerce (ICC) formulated a convention and several practices for them, which are the Uniform Rules for Demand Guarantees (URDG), the Uniform Custom and Practice for Documentary Credits (UCP), the United Nations Convention on Independent Guarantees and Standby Letters of Credit, and the International Standby Practices (ISP98). Although they are essentially consistent with each other, there still exist some differences among the specific articles. The clear recognition of their differences will make the parties concerned understand their rights and obligations more clearly, and at the same time, promote the international business develop healthily.In these convention and practices, the United Nations Convention on Independent Guarantees and Standby Letters of Credit is the only legislative document. The Convention established a harmonized set of rules for the independent guarantees and stand-by letters of credit, so it will provide greater legal certainty in their use of day-to-day commercial transactions and facility the use of them. For a convention has the strong demonstrating effects, the deeply research of the Convention will have an active influence for our banks and enterprises and to be a reference for the related legislation of our country.Using the way of comparison, the thesis, with the focus on the clauses of the Convention, makes a thorough research on the differences between the Convention and the other three practices, which are URDG, UCP500, ISP98. It also clarifies some clauses that are usually subject to be ignored by users. Moreover, at the end of the thesis, a conclusion about the characters of the Convention is made based on a large number of analytical comparisons. Because the research of the Convention is just beginning and the available achievements are mostly focus on the content of the Convention, this thesis is an original creation. For the use of the independent guarantees and stand-by letters of credit has been a trend of international commerce, I hope that this thesis could become a reference of the relating legislation in our country, make the banks and enterprises understand the rules more clearly, guide the parties concerned to choose the rules in practice, and then facilitate the use of the two type of instruments.