what is a statement by a bank guaranteeing acceptance and payment of a draft up to a stated amount

Document issued by a fiscal institution

Image ane: Subsequently a contract is concluded between a heir-apparent and a seller, the heir-apparent's bank supplies a letter of credit to the seller.

Image 2: Seller consigns the goods to a carrier in exchange for a neb of lading.

Image 3: Seller provides the bill of lading to bank in commutation for payment. Seller's banking company then provides the nib to heir-apparent'southward depository financial institution, who provides the bill to buyer.

Image 4: Buyer provides the bill of lading to carrier and takes delivery of the goods.

A letter of credit (LC), likewise known as a documentary credit or bankers commercial credit, or letter of undertaking (LoU), is a payment mechanism used in international trade to provide an economic guarantee from a creditworthy bank to an exporter of goods. Letters of credit are used extensively in the financing of international merchandise, when the reliability of contracting parties cannot be readily and easily determined. Its economical effect is to introduce a bank every bit an underwriter that assumes the counterparty risk of the heir-apparent paying the seller for goods.^[1]

History [edit]

The letter of credit has been used in Europe since ancient times.^[two] Letters of credit were traditionally governed by internationally recognized rules and procedures rather than by national constabulary. The International Chamber of Commerce oversaw the training of the first Compatible Community and Practice for Documentary Credits (UCP) in 1933, creating a voluntary framework for commercial banks to apply to transactions worldwide.^[3]

In the late 19th century and early 20th century, travelers commonly carried a round letter of credit issued by a human relationship bank, which allowed the beneficiary to withdraw cash from other banks along their journey. This type of letter of credit was eventually replaced past traveler's checks, credit cards and automated teller machines.^[four]

Although letters of credit first existed only as paper documents, they were regularly issued past telegraph in the tardily 19th century, and past telex in the latter half of the 20th century.^[5] Offset in 1973 with the creation of SWIFT, banks began to migrate to electronic data interchange equally a means of controlling costs, and in 1983 the UCP was amended to allow "teletransmission" of letters of credit.^[vi] By the 21st century, the vast majority of LCs were issued in electronic form and entirely "paperless" LCs were condign more than common.^[5]

Terminology [edit]

UCP 600 (2007 Revision) regulates common marketplace practice within the alphabetic character of credit market.^[vii] Information technology defines a number of terms related to letters of credit which categorise the various factors within any given transaction. These are crucial to understanding the part financial institutions play within. These include:

The Applicant is the person or visitor who has requested the letter of credit to be issued; this will unremarkably be the buyer.
The Beneficiary is the person or company who will be paid under the letter of the alphabet of credit; this will usually be the seller (UCP600 Art.two defines the casher as "the political party in whose favour a credit is issued").
The Issuing Bank is the bank that issues the credit, commonly following a request from an Applicant.
The Nominated Bank is a bank mentioned within the letter of credit at which the credit is bachelor (in this respect, UCP600 Art.2 reads: "Nominated banking concern means the banking company with which the credit is available or whatever bank in the case of a credit available with any bank") .
The Advising Banking concern is the bank that volition inform the Casher or their Nominated Bank of the credit, send the original credit to the Beneficiary or their Nominated Bank, and provide the Beneficiary or their Nominated Bank with whatsoever amendments to the letter of credit.
Confirmation is an undertaking from a bank other than the issuing bank to pay the Beneficiary for a Complying Presentation, allowing the Casher to further reduce payment take a chance, although Confirmation is usually at an extra toll.
Confirming Banking company is a bank other than the issuing bank that adds its confirmation to credit upon the issuing banking company'due south authorisation or asking thus providing more security to the beneficiary.
A Complying Presentation is a set of documents that meet with the requirements of the letter of credit and all of the rules relating to letters of credit.

Office [edit]

A letter of the alphabet of credit is an important payment method in international trade. It is particularly useful where the buyer and seller may non know each other personally and are separated past distance, differing laws in each land, and different trading customs.^[8] It is a primary method in international trade to mitigate the risk a seller of goods takes when providing those goods to a buyer. It does this past ensuring that the seller is paid for presenting the documents which are specified in the contract for sale betwixt the buyer and the seller. That is to say, a letter of credit is a payment method used to discharge the legal obligations for payment from the buyer to the seller, by having a bank pay the seller direct. Thus, the seller relies on the credit risk of the bank, rather than the heir-apparent, to receive payment. As volition be seen, and is observed in Image 2, the banking company will pay the seller the value of the goods when the seller provides negotiable instruments, documents which themselves represent the goods.^[ix] ^[10] Upon presentation of the documents, the appurtenances will traditionally exist in the control of the issuing bank, which provides them security confronting the risk that the buyer (who had instructed the bank to pay the seller) will repay the banking company for making such a payment.

In the event that the buyer is unable to make payment on the purchase, the seller may make a need for payment on the bank. The depository financial institution will examine the casher'south demand and if information technology complies with the terms of the alphabetic character of credit, volition honor the demand.^[eleven] Most letters of credit are governed past rules promulgated by the International Sleeping accommodation of Commerce known every bit Uniform Community and Practise for Documentary Credits.^[12] The current version, UCP 600, became effective July 1, 2007. Banks will typically require collateral from the purchaser for issuing a letter of credit and will charge a fee which is often a percentage of the amount covered by the letter of credit.

Types [edit]

Several categories of LCs be which seek to operate in different markets and solve different issues. An example of these include:

Import/consign(Commercial): — The same credit tin be termed an import or export letter of credit depending on whose perspective is considered. For the importer it is termed an Import LC and for the exporter of goods, an Consign LC.^[13]
Revocable/ Irrevocable: — Whether a LC is revocable or irrevocable determines whether the buyer and the issuing depository financial institution are able to dispense the LC or brand corrections without informing or getting permissions from the seller. Co-ordinate to UCP 600, all LCs are irrevocable, hence in do the revocable type of LC is increasingly obsolete. Whatever changes (amendment) or cancellation of the LC (except when expired) is done past the applicant (heir-apparent) through the issuing bank. Information technology must be authenticated and approved by the beneficiary (seller).
Confirmed/Unconfirmed: — An LC is said to be confirmed when a second banking concern adds its confirmation (or guarantee) to honor a complying presentation at the asking or say-so of the issuing depository financial institution.
Restricted/ Unrestricted: — Either the one advising bank can purchase a bill of exchange from the seller in the case of a restricted LC or; the confirmation banking concern is non specified, which means that the exporter can show the bill of exchange to any bank and receive a payment on an unrestricted LC.
Deferred / Usance: — A credit that is not paid/assigned immediately after presentation, but after an indicated period that is accepted by both buyer and seller. Typically, seller allows buyer to pay the required money subsequently taking the related goods and selling them.

Additionally, a alphabetic character of credit may also accept specific terms relating to the payment atmospheric condition which chronicle to the underlying reference documents. Some of these include

At Sight: — A credit that the announcer bank immediately pays after inspecting the railroad vehicle documents from the seller.
Red Clause: — Before sending the products, seller tin can have the pre-paid part of the money from the bank. The first part of the credit is to concenter the attending of the accepting bank. The first time the credit is established by the assigner depository financial institution, is to proceeds the attention of the offered bank. The terms and conditions were typically written in red ink, thus the proper name.^[fourteen]
Dorsum to Back: — A pair of LCs in which one is to the benefit of a seller who is not able to provide the corresponding goods for unspecified reasons. In that result, a 2nd credit is opened for another seller to provide the desired goods. Back-to-back is issued to facilitate intermediary merchandise. Intermediate companies such as trading houses are sometimes required to open up LCs for a supplier and receive Consign LCs from buyer.
Standby Letter of the alphabet of Credit: (SBLC) — Operates like a Commercial Alphabetic character of Credit, except that typically information technology is retained as a "standby" instead of being the intended payment mechanism. In other words, this is a LC which is intended to provide a source of payment in the consequence of non-functioning of contract. This is a security confronting an obligation which is not performed. If you nowadays the depository financial institution with demands of non-payment information technology is not a guarantee - trigger isn't not-payment - it is presented by documentation.^[15] UCP600 commodity 1 provides that the UCP applies to Standbys; ISP98 applies specifically to Standby letters of Credit; and the United Nations Convention on Contained Guarantees and Standby Letters of Credit^[16] applies to a small number of countries that have ratified the Convention.

Transferability [edit]

The exporter has the right to make the credit available to one or more subsequent beneficiaries. Credits are fabricated transferable when the original casher is a "middleman", who does not supply the documents himself, but procures either appurtenances or documents from other suppliers and arranges them to exist sent to the issuing bank. A letter of credit can be transferred to the second beneficiary at the asking of the first beneficiary only if it expressly states that the letter of credit is "transferable". A bank is non obligated to transfer a credit. It can further exist transferred to more than i alternate beneficiary as long as it allows partial shipments. The terms and atmospheric condition of the original credit must be replicated exactly in the transferred credit. However, to proceed the workability of the transferable letter of the alphabet of credit, some figures can be reduced or curtailed, including:

Corporeality
Unit cost of the merchandise (if stated)
Expiry engagement
Presentation period
Latest shipment date or given period for shipment.

The beginning beneficiary may demand from the transferring depository financial institution to substitute for the bidder. Withal, if a certificate other than the invoice must exist issued in a way to show the applicant'south name, in such a example that requirement must indicate that in the transferred credit it will exist free. Transferred credit cannot be transferred once more to a third beneficiary at the request of the second beneficiary.

In some cases, the middleman does not desire the buyer and supplier to know each other. The middleman is entitled to substitute his own invoice for the supplier'southward and acquire the difference every bit turn a profit.

Operational function [edit]

Typically, subsequently a sales contract has been negotiated, and the buyer and seller have agreed that a letter of credit volition exist used equally the method of payment, the Applicant volition contact a depository financial institution to enquire for a alphabetic character of credit to be issued. Once the issuing banking company has assessed the buyer'south credit risk – i.east. that the Applicant will exist able to pay for the goods – it will issue the letter of credit, meaning that it will provide a promise to pay the seller upon presentation of certain documents. Once the Beneficiary (the seller) receives the letter of the alphabet of credit, it will check the terms to ensure that it matches with the contract and will either suit for shipment of the goods or inquire for an subpoena to the letter of credit so that it meets with the terms of the contract. The alphabetic character of credit is limited in terms of time, the validity of credit, the final date of shipment, and in terms of how much late afterward shipment the documents may be presented to the Nominated Bank.^[17]

Once the goods have been shipped, the Beneficiary volition present the requested documents to the Nominated Bank.^[10] This bank will check the documents, and if they comply with the terms of the Letter of the alphabet of Credit, the issuing Bank is bound to award the terms of the letter of the alphabet of credit by paying the Beneficiary.

If the documents do not comply with the terms of the letter of the alphabet of credit they are considered Discrepant. At this point, the Nominated Bank will inform the Beneficiary of the discrepancy and offering a number of options depending on the circumstances later on consent of applicant. Even so, such a discrepancy must be more than footling. Refusal cannot depend on anything other than reasonable test of the documents themselves. The depository financial institution and so must rely on the fact that in that location was, in fact, a fabric fault.^[x] A fact that if truthful would entitle the buyer to reject the items. A wrong date such as an early delivery appointment was held by English courts to non be a material mistake.^[10] If the discrepancies are minor, it may be possible to nowadays corrected documents to the bank to make the presentation compliant.^[ten] Failure of the bank to pay is grounds for a chose in action. Documents presented after the fourth dimension limits mentioned in the credit, nonetheless, are considered discrepant.

If the corrected documents cannot exist supplied in time, the documents may exist forwarded directly to the issuing bank "in trust"; effectively in the hope that the Bidder volition take the documents. Documents forwarded in trust remove the payment security of a alphabetic character of credit so this route must only be used every bit a last resort.

Some banks will offer to "Telex for Approval" or similar. This is where the Nominated Bank holds the documents, but sends a message to the Issuing Bank asking if discrepancies are acceptable.^[10] This is more secure than sending documents in trust.

Documents That May Be Requested For Presentation [edit]

To receive payment, an exporter or shipper must present the documents required by the LC. Typically the letter of credit will request an original bill of lading every bit the utilise of a championship document such every bit this is critical to the functioning of the Letter of Credit.^[18] Still, the list and grade of documents is open to negotiation and might contain requirements to nowadays documents issued by a neutral third-party evidencing the quality of the appurtenances shipped, or their place of origin or identify. Typical types of documents in such contracts might include:^[x]

Financial documents — bill of exchange, co-accepted draft
Commercial documents — invoice, packing list
Shipping documents — bill of lading (ocean or multi-modal or charter party), airway bill, lorry/truck receipt, railway receipt, CMC other than mate receipt, forwarder cargo receipt
Official documents — license, embassy legalization, origin certificate, inspection certificate, phytosanitary document
Insurance documents — insurance policy or certificate, just not a encompass note.

The range of documents that may be requested by the applicant is vast, and varies considerably past country and commodity. Several methods of verifying the documents exist, each provides different variations of take chances to the fact that the documents are legitimate. A Documentary Credit provides security for both buyer and seller. Outlined in the UCP 600, the bank will give an undertaking (or promise), on behalf of buyer (who is frequently the applicant) to pay the beneficiary the value of the goods shipped if acceptable documents are submitted and if the stipulated terms and conditions are strictly complied with. The buyer can exist confident that the appurtenances he is expecting merely will be received since information technology will be evidenced in the form of certain documents, coming together the specified terms and conditions. The supplier finds his confidence in the fact that if such stipulations are met, he will receive payment from the issuing bank, who is contained of the parties to the contract. In some cases, a letter of credit will require the documents to exist collected. Subject field to ICC's URC 525, sight and usance, for commitment of shipping documents against payment or acceptances of typhoon, where shipment happens first, then the title documents are sent to the heir-apparent'southward bank by seller's bank, for delivering documents confronting collection of payment/credence. Other forms of effected payment is the straight payment where the supplier ships the goods and waits for the heir-apparent to remit the bill, on open account terms.

Chance Exposure [edit]

Letters of Credit are often used in international transactions to ensure that payment will exist received where the buyer and seller may not know each other and are operating in different countries. In this case, the seller is exposed to a number of risks such as credit adventure, and legal hazard acquired by the distance, differing laws and difficulty in knowing each party personally.^[19] Some of the other risks inherent in international trade include:

Fraud Risks

The payment volition be obtained for nonexistent or worthless merchandise confronting presentation by the beneficiary of forged or falsified documents.

Legal Risks

In that location is the possibility that performance of a documentary credit may be disturbed by legal action relating directly to the parties and their rights and obligations under the documentary credit or performance may exist prevented by government activeness exterior the control of the parties. Alternatively, operation of a contract – including an obligation under a documentary credit relationship – could too be prevented by external factors such equally natural disasters or armed conflicts. These risks, however, are often seen as secondary to the hazard of non-payment.

Applicant

Several risks could relate to the parties of the applicant themselves. These may include situations where at that place is a non-delivery of Goods, Brusk shipment, the goods are of inferior quality, are damaged, or are tardily. The bidder is likewise exposed to the failure of the depository financial institution to make payment.

Issuing Banking company

The issuing bank is as well exposed to risks which he may seek to mitigate through diverse techniques. He volition be exposed to the insolvency take chances of the bidder, that is, the run a risk the applicant runs insolvent before he is able to repay the letter of credit. Secondly, the depository financial institution will be exposed to a hazard of fraud by the seller, who may provide incorrect or falsified documents to receive payment. If the bank ought to have known that the documents were a fraud, then the depository financial institution will be exposed to a fraud.

Beneficiary

The beneficiary will exist exposed to the risk of its own failure to comply with credit atmospheric condition or failure of, or delays in payment from, the issuing depository financial institution. These risks are considered remote. Crucially, the beneficiary is not exposed to the risks of set-off past the bidder where the goods are damaged or are of inferior quality. While he may be sued past the applicant at a later point, the issuing banking concern cannot reduce the payment owed to represent with the damage occurred. This is crucial in mitigating the hazard to insolvency. Crucial to a letter of the alphabet of credit is the beneficiary's (the seller) effort to isolate itself from the credit risk of the buyer. That is to say, it is concerned primarily with the ability of the buyer to pay for the goods.

Pricing [edit]

Issuance charges, covering negotiation, reimbursements and other charges are paid by the applicant or every bit per the terms and conditions of the LC. If the LC does not specify charges, they are paid by the Bidder. Charge-related terms are indicated in field 71B.^{[ citation needed ]}

Legal principles [edit]

The fundamental principle of all letters of credit is that letters of credit deal with documents and not with appurtenances. The payment obligation is contained from the underlying contract of sale or any other contract in the transaction. The depository financial institution'due south obligation is defined past the terms of the LC alone, and the contract of sale is not considered.

The specified documents are often bills of lading or other 'documentary intangibles' which 'A' and 'B' have previously specified in their original contract.^[20]

The actions bachelor to the buyer arising out of the sale contract exercise not concern the banking company and in no style touch its liability.^[21] Article 4(a) of the UCP600 states this principle conspicuously. This is confirmed within the marketplace-do documents stated by Article 5 of UCP600. Every bit is a core tenet of Financial law, market practice comprises a substantial portion of how parties behave. Accordingly, if the documents tendered by the casher or their agent are in guild, and then, in general, the bank is obliged to pay without further qualifications.^[x]

Every bit a effect, it is the issuing bank who bears the take a chance that is linked with not-payment of the buyer. This is advantageous because the issuing bank often has a personal banking human relationship with the buyer. The whole commercial purpose for which the system of confirmed irrevocable documentary credits has been developed in international trade is to give to the seller an bodacious right to exist paid before he parts with control of the goods under sale.

It further does not permit of whatever dispute with the buyer as to the performance of the contract of auction being used every bit a ground for non-payment or reduction or deferment of payment.

The only exception to this may be fraud. For example, a dishonest seller may present documents which comply with the letter of credit and receive payment, merely for information technology to exist subsequently discovered that the documents are fraudulent and the goods are not in accord with the contract. This would identify the run a risk on the heir-apparent, but it also means that the issuing depository financial institution must be stringent in assessing whether the presenting documents are legitimate.^[10]

Like to other Financial law instruments, a Letter of Credit utilises several legal concepts to achieve the economical event of shifting the legal exposure from the seller to the buyer. The policies backside adopting this principle of abstraction are purely commercial. Whilst the banking company is under an obligation to identify that the correct documents exist, they are not expected to examine whether the documents themselves are valid. That is to say, the bank is not responsible for investigating the underlying facts of each transaction, whether the goods are of the sufficient – and specified – quality or quantity.

Because the transaction operates on a negotiable instrument, information technology is the document itself which holds the value - not the goods to which the reference. This means that the bank need but be concerned with whether the document fulfils the requirements stipulated in the letter of credit.

Documents required under the LC, could in sure circumstances, be different from those required under the sale transaction. This would place banks in a dilemma in deciding which terms to follow if required to look backside the credit agreement. Since the basic function of the credit is to provide a seller with the certainty of payment for documentary duties, it would seem necessary that banks should honor their obligation in spite of whatsoever buyer allegations of misfeasance.^[22] If this were not the case, financial institutions would be much less inclined to issue documentary credits because of the risk, inconvenience, and expense involved in determining the underlying goods.

Fiscal institutions do non act every bit 'middlemen' but rather, as paying agents on behalf of the buyer. Courts accept emphasized that buyers always have a remedy for an action upon the contract of sale and that it would be a calamity for the business organization world if a depository financial institution had to investigate every breach of contract.

With the UCP 600 rules the ICC sought to make the rules more flexible, suggesting that data in a document "demand not be identical to, only must not conflict with information in that document, any other stipulated certificate, or the credit", as a style to business relationship for any minor documentary errors. If this were not the example, the bank would be entitled to withhold payment fifty-fifty if the deviation is purely technical or even typographical.

However, in practice, many banks still hold to the principle of strict compliance, since it offers concrete guarantees to all parties.^[10] ^[23] The general legal proverb de minimis non curat lex (literally "The law does not concern itself with trifles") has no place in the field.

However, whilst the details of the letter of credit can be understood with some flexibility the banks must adhere to the "principle of strict compliance" when determining whether the documents presented are those specified in the letter of credit. This is done to make the banks' duty of effecting payment against documents easy, efficient and quick.

Legal ground [edit]

Legal writers take failed to satisfactorily reconcile the depository financial institution's obligation to pay on behalf of the applicant with whatsoever contractually-founded, academic analysis. That is to say, they accept not examined legal effect of the banks obligation through a conclusive theoretical lens. This has produced several conflicting theories as to the contractual effect of a letter of credit. Some theorists advise that the obligation to pay arises through the unsaid promise, assignment, novation, reliance, agency, estoppel and even trust and the guarantees.^[24] Although documentary credits are enforceable once communicated to the beneficiary, it is difficult to evidence any consideration given by the beneficiary to the banker prior to the tender of documents. In such transactions the undertaking by the beneficiary to deliver the goods to the applicant is not sufficient consideration for the bank'due south promise because the contract of sale is made before the issuance of the credit, thus consideration in these circumstances is past. Even so, the performance of an existing duty under a contract may be a valid consideration for a new hope fabricated by the bank, provided that there is some practical benefit to the banking company^[25] A hope to perform owed to a tertiary party may also constitute a valid consideration.^[26]

It might also exist viable to typify messages of credit as a collateral contract for a tertiary-party beneficiary, because iii different entities participate in the transaction: the seller, the buyer, and the broker. Jean Domat suggests that because messages of credit are prompted by the buyer's necessity, the cause of a LC is to release the heir-apparent of his obligation to pay directly to the seller. Therefore, a LC theoretically fits as a collateral contract accustomed by conduct or in other words, an implied-in-fact contract where the buyer participates as the third political party casher with the banking concern acting as the stipulator and the seller as the promisor. The term "beneficiary" is non used properly in the scheme of an LC because a beneficiary (too, in trust law, cestui que utilize) in the broadest sense is a natural person or other legal entity who receives coin or other benefits from a benefactor. Annotation that under the scheme of letters of credit, banks are neither benefactors of sellers nor benefactors of buyers and the seller receives no coin in gratuity mode. Thus is possible that a "letter of credit" was i of those contracts that needed to be masked to disguise the "consideration or privity requirement". As a result, this kind of organisation would make letter of credit to be enforceable nether the action assumpsit because of its promissory connotation.^[27]

A few countries take created statutes in relation to messages of credit. For example, most jurisdictions in the United states of america (U.Southward.) have adopted Article 5 of the Uniform Commercial Code (UCC). These statutes are designed to work with the rules of market practice including UCP and ISP98. These rules of practice are incorporated into the transaction by understanding of the parties. The latest version of the UCP is the UCP600 constructive July i, 2007. Since the UCP are not laws, parties have to include them into their arrangements as normal contractual provisions. However, they still form a substantial part of market do and underpin Fiscal law crucially.

National laws [edit]

Federal republic of germany [edit]

Bürgerliches Gesetzbuch, the German language ceremonious code, does not direct address letters of credit. German case law indicates that the human relationship between the issuing depository financial institution and customer is a contract for execution of a transaction, while the relationship between the issuing depository financial institution and the casher is a hope of a debt.^[28]

Switzerland [edit]

The Swiss Ceremonious Code of 1911 did not directly address letters of credit, which were nevertheless rare in the country at the time. Courts eventually dealt with the device past treating it as a hybrid of a mandate (Auftrag) and authorization-to-pay contract (Anweisung).^[28]

United States [edit]

Letters of credit came into general domestic use in the Us during World War I, although they had been used in American foreign merchandise for some time prior.^[2] The state of New York has historically had the most substantial and consistent torso of instance law in the United States with regard to letters of credit, due to the prominence of New York banks in international trade.^[29] The New York Bankers Commercial Credit Conference of 1920 provided the first set of voluntary Fifty/C regulations for major banks in the United states, only these banks transitioned to the international UCP standard past 1938.^[3]

Commodity 5 of the Uniform Commercial Code, drafted in 1952, provided a ground for codifying many UCP principles into land police^[iii] and created one of the but extensive specific legal regulations of messages of credit worldwide, although the UCC rules practice not comprehend all aspects of letters of credit.^[28] New York effectively subjugated the UCC rules to the existing UCP rules, and as a result the UCP rules continued to govern letters of credit under New York law.^[29] Article v was revised in 1995 to reflect the latest international practices as codified in the UCP.^[xxx]

Use in fraud [edit]

Messages of credit are sometimes used to defraud banks through presentment of fake documentation indicating that goods were shipped when they actually were not. Letters of credit are as well sometimes used equally part of fraudulent investment schemes.^[31]

In the international banking organization, a Letter of the alphabet of Undertaking (LOU) is a conditional bank guarantee, under which a bank allows its customer to raise coin from another bank's foreign branch in the form of a short term credit. The LOU serves the purpose of a bank guarantee. However, to be able to enhance the LOU, the customer is supposed to pay margin money to the banking company issuing the LOU and accordingly, he is granted a credit limit. In 2018, PNB suffered from such a alienation of documentation protocols.^[32]

Encounter also [edit]

Bank payment obligation
Buyer'due south credit
Circular letter of credit
Documentary collection
Uniform Community and Practise for Documentary Credits
Financial law

References [edit]

^ "Messages of credit". United nations Trade Facilitation Implementation Guide . Retrieved 2018-10-30 .
^ ^a ^b Mead, Carl A. (April 1922). "Documentary Letters of Credit". Columbia Constabulary Review. 22 (4): 297–331. doi:ten.2307/1111302. JSTOR 1111302.
^ ^a ^b ^c Chadsey, Horace M. (1954). "Practical Effect of the Compatible Commercial Code on Documentary Alphabetic character of Credit Transactions". University of Pennsylvania Constabulary Review. 102 (5): 618–628. doi:10.2307/3310135. JSTOR 3310135.
^ McKeever, Kent; Ditcheva, Boriana (October 2006). "The Circular Letter of Credit". library.law.columbia.edu . Retrieved 2018-ten-31 .
^ ^a ^b Barnes, James G.; Byrne, James E. (Bound 2001). "East-Commerce and Letter of Credit Police and Practice". The International Lawyer. 35: 23–29.
^ Kozolchyk, Boris (Summertime 1992). "The Paperless Letter of Credit". Law and Contemporary Issues. 55 (iii): 39–101. doi:ten.2307/1191864. JSTOR 1191864.
^ Hinkelman, Edward Yard. (2010). Glossary of International Trade (5 ed.). California: World Trade Press. p. 172. ISBN9788131807552.
^ Larson, Aaron (29 July 2016). "How do Letters of Credit Work". ExpertLaw.com . Retrieved 31 Oct 2017.
^ "Messages of credit for importers and exporters". Gov.u.k.. 1 August 2012. Retrieved 31 October 2017.
^ ^a ^b ^c ^d ^e ^f ^yard ^h ⁱ ^j United Urban center Merchants (Investments) Ltd v Royal Bank of Canada (The American Accord) [1983] 1 Ac 168
^ "Understanding and Using Messages of Credit, Role I". Credit Enquiry Foundation. 1999. Retrieved 31 Oct 2017.
^ Hashim, Rosmawani Che (August 2015). "The UCP 600 rules in Letter of the alphabet of Credit" (PDF). University of Malaya . Retrieved 31 October 2017.
^ McCurdy, William E. (March 1922). "Commercial Letters of Credit". Harvard Law Review. 35 (5): 539–592. doi:10.2307/1328326. JSTOR 1328326.
^ Bhogal, T.; Trivedi, A. (2007). International Trade Finance: A Pragmatic Arroyo. p. 59. ISBN0230594328.
^ Alternative Power Solutions v Primal Electricity Lath [2015]
^ "Un Convention on Contained Guarantees and Stand-by Letters of Credit". United Nations General Associates. 11 December 1995. Retrieved 31 October 2017.
^ Fortis Bank SA/NV 5 Indian Overseas Depository financial institution (2011).
^ Equitable Trust Co of NY five Dawson Partners
^ Standard Chartered Bank five Dorchester LNG (2) Ltd [2015].
^ Standard Chartered Bank v Dorchester LNG (two) Ltd [2015]
^ Ficom S.A. 5. Socialized Cadex [1980] 2 Lloyd's Rep. 118.
^ United City Merchants (Investments) Ltd v Majestic Bank of Canada (The American Accordance) [1983] one.A.C.168 at 183
^ J. H. Rayner & Co., Ltd., and the Oil seeds Trading Company, Ltd. 5.Ham bros Banking concern Limited [1942] 73 Ll. L. Rep. 32
^ Finkelstein, Herman Norman (1930). Legal Aspects of Commercial Letters of Credit. Columbia University. Retrieved 31 October 2017.
^ William v Roffey Brothers & Nicholls (contractors) Ltd
^ Scotson five Pegg
^ Menendez, Andres (2010-07-thirty). "Letter of the alphabet of Credit, its Relation with Stipulation for the Benefit of a Tertiary Party". SSRN 2019474.
^ ^a ^b ^c Grassi, Paolo South. (1995). "Letter of Credit Transactions: The Banks' Position in Determining Documentary Compliance-A Comparative Evaluation nether Usa, Swiss and German Constabulary". Stride International Police Review. seven: 81–127.
^ ^a ^b Harfield, Henry (Autumn 1962). "Lawmaking Treatment of Letters of Credit". Cornell Law Quarterly. 48: 92–107.
^ Barnes, James G. (1995). "Internationalization of Revised UCC Article 5 (Letters of Credit)". Northwestern Journal of International Constabulary & Business. sixteen: 215–223.
^ "Letter of Credit Fraud". Federal Bureau of Investigation . Retrieved 2018-10-30 .
^ "PNB-Nirav Modi Fraud: What Had Transpired At Bombay's Brady Road Branch". NDTV.com . Retrieved 2018-02-17 .

External links [edit]

Text of UCP 600, certificate hosted at Faculty of Law, Universidade Nova de Lisboa, Portugal.
Letter of Credit in People's republic of china from ExamineChina.
(in Farsi) What is LC?
Menendez, Andres, Letter of Credit, a Masked Contract (July 30, 2010).

leitefousee.blogspot.com

Source: https://en.wikipedia.org/wiki/Letter_of_credit