Study On The Legal Issues Of Standby Letter Of Credit

As a standby letter of credit from international financial instruments have been in the international economic relations has been widely used, its function is no longer limited to the guarantee, but more used to cover, finance and other fields. Standby letter of credit rules are quite complex and unique, for the unity of standby letters of credit practices, International Chamber of Commerce has formulated the "Uniform Customs and Practice for Documentary Credits", "Uniform Rules for Demand Guarantees," "United Nations Independent Guarantees and Standby Letters of Credit "and the" International Standby Practices "and other rules, rights and obligations of the parties standby letters of credit and operational procedures for a uniform requirement. In China, both in the theory of standby letters of credit or standby letters of credit related to legislation, are very backward. Standby letters of credit of the relevant sources of law is mainly reflected in:"PRC Security Law," "on the application <PRC Security Law" Interpretation of Several Issues "," External security management within the organization, "the" intermediary business Interim Provisions "," on the implementation of "Business Bank of Provisional Regulations on Intermediary Business> issues related to notice", "Domestic Institutions Rules for the Implementation Measures for the Administration of external security", "General Principles of Civil Law", "Contract Law" and the Supreme People's Court "on the implementation of Republic of China Civil Code "number of views on the issue" (Trial), the Supreme Court issued "to hear thousands of letters of credit, if disputes provisions of the problem" and other specifications. Which to some extent, affected China's international trade and domestic trade development, and understanding the standby letter of credit application status at home and abroad, borrowing from the advanced experience on standby letters of credit, standby letters of credit to enhance the research and accurately determine the reserve the risk of credit applications, not only conducive to the function to play the role of standby letters of credit, standby letters of credit, and help promote the wide application in China.This article is divided into three parts.The first part of the standby letter of credit with domestic and foreign research results, to re-sort the standby letter of credit creation and development of the concept of standby letters of credit, standby letters of credit of the legal characteristics of the types of standby letters of credit, standby letters of credit in the operation of the mechanism The basic issue standby letters of credit.The second part of the "Uniform Customs and Practice for Documentary Credits", "Uniform Rules for Demand Guarantees," "United Nations Convention on Independent Guarantees and standby letters of credit" and the "International Standby Practices" and other rules related to standby letters of credit provisions of international conventions in the same time, the legal status of countries is also analyzed.The second part of our legal system related to standby letters of credit were introduced and analyzed in light of international practices and conventions in the final merit, proposed the development and standby letters of credit related entities, the legal system procedures, improve and standby letters of credit regulatory norms, gradually adjust the administrative approval of foreign standby letter of credit rights, through judicial interpretation or judicial decisions of domestic and gradually recognized the effectiveness of standby letters of credit, standby letters of credit banks in the clear responsibility of business, improve and apply the law relating to standby letters of credit rules to improve the standby letter of credit fraud, the burden of proof and standard of proof, to take measures to improve foreign-related standby letters of credit the professional quality of employees and strengthen the training of judges and improve the professional quality of judges of the law, strengthen legal case in the practice of standby letters of credit improve aspects of the role of the legal system of the standby letter of credit specific proposals to promote the business of standby letters of credit with the international market and improve our banks in the international trade competitiveness, and better services for international and domestic trade.