Letter Of Credit Law Research

Documentary credit, which is a traditional tool of international settlements, is appraised as the Great and Genius Creation of the English People and the living Blood of Business. Therefore, we may understand the importance of the documentary credit in international transaction. In discussion and research of issues in documentary credit, selection of base is a key point.Distinctly this article tells on the basis of the issuing bank. Chapter One is about the introduction of documentary credit including the origin, development and the future expect, and also the reason why this article bases on issuing bank is given.Chapter Two analyses the relationships between the issuing bank and others. With comparative methods, this chapter discusses not only the relationship between the issuing bank and both traders, but also the relationship between the issuing bank and the relative bank. As a result of the research, it is attested that a single law can't explain all, so that there is a requirement to setup a specific law of documentary credit.In Chapter Three the autonomy principle is under discussion. With same comparative ways it analyzes the development and change of various countries on this principle especially in China. In the second section the three independent contracts referred in UCP500 and the contradiction between L/C and documentary fraud are discussed in detail. Then we come to the embarrassment of the issuing bank when the bank is keeping the autonomy principle. Much attention should be paid to the money laundering regulations hindering the issuing bank especially.The other two principles related with autonomy principle are proposed and analyzed in Chapter Four. This chapter which pays much attention to viewpoints of countries and opinions of the International Chamber of Commerce is also the main part of this article. Then some referential suggestions are given to some problems which need attention when the issuing bank is checking documents.In the fifth and also last part, in order to settle the lawful risks and operational...