Legal Research Of Banking Documents Examination In Documentary Credit Transactions

As the lifeline of the international commerce,documentary credit got identified by most of countries of the world because of its universality,the applicable scope of L/C payment procedure of convenience,and then is used in international trade.In credit transactions,the issuing bank opensa L/C in accordance with the applicant's application and then takes in the submission of the beneficiary and stipulations in the L/C documents to the beneficiary of the obligation of payment,the interests of the documents is the most important carrier,therefore an issuing bank becomes the focus of the L/C transaction linking,also is one of the most prone to disputes.Due to the nature of the document examination is independent of the underlying transaction,in fact is the trade documents,and the standard of examination of documents became important to confirm whether payment basis is or not.Internationally there is no exact to the L/C issuing bank standard rules,but it has its own international conventions.Because there is on the surface of the examination of documents,the independent principle leads to the L/C fraud has become a headache problem.Refusing to pay or fraud leads to a decline in the L/C use,reduce bank(see article).Although the L/C is facing serious challenges,but cannot deny that it is still irreplaceable payment in international trade,the way to solve the problem of its development is L/C.China's current legal system on the L/C is shown slightly blank,only 2005 on the basis of formulating the provision of provisions on some issues of letter of credit dispute cases,and the current international documentary legal documents has been updated to the L/C No.600.Compared with the blank of domestic legislation situation,foreign research is relatively richer,developed capitalist countries such as Britain and America created laws and precedents about the banking examination problems,their credit dispute resolution mechanism provides our country of reference basis in solving such kind of problems.In the international environment,UCP600 and ISBP745 are two international laws as the counterpart of the international trade on the basis of L/C,in which there are about the document examination standard with Banks,detailed rules and the relevant provisions of the risk,however,due to the international situation was complex and changeable,they are not detailed and specific provisions,especially for two aspects of the standard of examination of documents and the processing of risk hazy,controversy exists always,causing differences in academic discussion and practice.The paper consists of five parts including introduction and text parts.The introduction part describes the background and meaning of the paper,the documentary resource of my thesis,the means I use in text.Next is my text parts,consist of four chapters.At the first chapter,I write something about the importance of banking examination and the questions it mentioned;the second chapter says the standard of banking examination whereas the third chapter writes about credit fraud.Finally,I make some legal suggestions in legislation and judicial ways.In this paper,via the methods of comparison research,legal interpretation and empirical research,through the analysis of the theoretical basis of the relevant knowledge and analysis of the country's foreign cases to study the standard of examination of documents to the L/C problem and fraud issue,aiming at putting forwards some suggestions for solving problems of the L/C and the banking examination of documents presently.