A Study On Inward Documentary Bills Under Letter Of Credit

Inward documentary bills under L/C are a very important business for banks. With the fast pace of opening to outside world, honoring of promises on entrance of WTO, as well as the entrance of foreign banks, business of this kind will meet a large increase. Risks, operative or from law, do exit. Operative venture, which should be solved by banks themselves, seems nothing to do with this paper. While risks from law, cannot be solved by banks alone. Thus, studying this business, not only have academic value as well as practical meaning. This thesis comprises four chapters. The first chapter explains the concepts of Inward Documentary Bills, trying to reveal the fact that: the secured interest from L /C; legal relations differs from the secured interest from Inward documentary bills.The second chapter analysis the several different systems of hypothecation in common law system and continental law system. Concluding that errors that the vendee transfers the proprietary right to the bank through trust receipt while the B/L and the cargo is pledged to the bank again. Author indicates that the practice in the banks of China confuse the continental law system and Anglo-American law system.In the third chapter, the author compares trust receipt under British law with that under American law, analyzing the legal natures of trust receiptIn the fourth section, the author introduces the practices banks lead in their business, then reveals that China hasn't the relevant system to guide inward documentary bills. Afterwards, presents some suggestions on how to reconstruct these very practices.