Application And Maturity On Exception Principle For Letter Of Credit Fraud

Letter of credit is a key payment tool in the international trade business, it plays a prominent role. However, the Independence Principle and the strict compliance Principle provide the opportunity for L/C fraud. In recent years, L/C fraud's becoming more diverse, which influences the development of the international trade seriously. In spite of this, In order to keep the benefits of the applicant and issuing bank and maintain the impartial and reasonable order of the International trade, the principle on fraud exception of the letter of credit comes to develop. And the Fraud Exception principle has strict applicable conditions. Different country has different judicial remedies, such as the ban in Britain and the United States, payment order in our country.In the view of this, the text of this dissertation is divided into four parts:Chapter one is the analysis of the concept, form of expression and origins of the fraud in letter of credit, then analysis the judgment standard of L/C fraud, illustrated its theoretical foundation which is the Independence Principle in detail. The second part discusses the meanings and establishment of the principle of fraud exception, then analysis the juridical cause of the principle. The third part discusses the applicable conditions of the Fraud Exception, include mainbody, time, program and essential condition. The last part reviews some legislative and judicial activity about the fraud exception principle in our country, analyses the existing problems facing the legislation and the judicial practices in China and put forwards some interrelated suggestions.