Credit Card Fraud And Relief

Letter of Credit, which is regarded as "create of gift" for its ingeniously construction, is one of the most important means of settlement accounts and payment in international finance and trade. It allocates reasonably the responsibility and risks in the transactions, running on the basis of the golden principle of independence and abstraction of L/C. The serious frauds on L/C has given heavily impacts on international finance and trade, especially making a feature of false shipping documents against the applicant of L/C. Self-prevention, one of the remedy of fraud on L/C, means mat the applicant should adhere to the motto "Caveat emptor". Regarding remedy of bank, the bank will cautiously settle the dishonor requirements from the applicant within the frame of the international bank practices. But the bank always is seated awkward position to protect the benefits of the applicant and maintain itself reputation in the meantime, because the bank don't have the jurisdiction. We are looking forward to establishing the fraud exception legal system in China. As the part of remedial jurisdiction, though it is a long way to grope, In the demand of the theory and judicial practices on L/C, it is necessary to introduce the conception of "material fraud". Lift up the threshold of certificate standard of the fraud and normalize the process of decision of injunction so as to make balanced protection between the remedy for applicant and the holder in due course, and pay same attention to the principle of independence and fraud exception of L/C. I hereby expound the means of remedy for fraud on L/C try to probe into a subject of the improvement of legal system of the fraud exception on L/C through the comments on the newly judicial explanation of the Supreme People's Court over L/C...