On The Legal Status Of The Negotiating Bank Under UCP600

As one of the settlement means of trade, L/C has a long and profoundhistory, and from its birth, it has been occupying a very important positionin the international trade. With the international trade increasinglydevelopment, L/C is used more and more. Negotiation credit, as an importantpart of L/C, is favored a number of enterprises and banks. However, thecurrent legislation of negotiation credit is scanty to some degree. Today,the most authoritative and recognized rules about L/C is UCP600, comparedto UCP500, although the meaning of "negotiation" has been updated andimproved in the UCP600, but there’s still no further clarifying of therights and obligations of negotiating bank. Therefore, the author considersthat it is necessary to do a systematic elaboration of the rights and dutiesthat the negotiating bank has in the L/C process, in order to play a certainpositive role in the negotiation credit theory and its practice. This paperwill be divided into the following five parts:In the first part, the author firstly introduces the concept of L/Cand negotiation credit, and then through the analysis of UCP500and UCP600in defining the meaning of "negotiation" to make a comparison and research.Finally, in order to better the understanding of the meaning of "negotiation", the author also discusses the relation between Negotiationand Outward Bill.In the second part, the author starts from the concept of thenegotiating bank and its legal suitability, then introduces and discussesthe rights and obligations of the negotiating bank, and finally analyzesits relationships between two other important parties-the issuing bankand the beneficiary, in order to clear its legal status.In the third part, in view of the currently controversial problem ofthe recourse right of negotiating bank, the author introduces and analyzesin detail the two kinds of theories at present academic circles, and onthis basis, put forward her own views. Subsequently, the differentapplications of negotiating bank recourse in practice are discussed.In the fourth part, for the current status quo of negotiation credit’slegal system is not perfect, the author puts forward that the judicialinterpretation can be used to solve this problem under the premise of notconflicting with UCP600.In the conclusion part, the author summarizes this study, and drawsthe conclusion, and then puts forward her own opinions about this issue.