Legal Issues In The Letter Of Credit Financing

Some legal problems in the financing behavior that this text studies under the letter of credit. The letter of credit is the most popular means of payment in the international trade contract, but besides paying function, the letter of credit has financing function, and its financing function is often easy to be ignored by people. In addition party's legal relation of each side in the trade of letter of credit is more complicated, it is comparatively close to contact international trade and bank practice. So there are less people who study legal problems in the financing of letter of credit. In this respect can materials drawn lessons from to consult less too. This text is it practise to base on, letter of credit financing that reflect dispute and other legal questions that appear start with from bank international settlement. Have analysed the nature of different financing behaviors, each side party's relation and other legal questions of meritting attention involved in financing, and has proposed some suggestions on the construction of the legal system in the financing of letter of credit, Proceeding from angle of the bank will operate the concrete link in the course to design to the practice, in order to help the bank to take precautions against the legal risk in the financing of letter of credit.The financing of letter of credit can be divided into and imported two kinds ground bank financing and export place bank financing, person who import main kind of bank financing to is it is it gather together to escort to import, Is it is it gather together main legal question in whether bank is it escort which kind of rights bank have at document of the goods after remitting to handle with importer to escort to import, Is it is it gather together legal question in is it guarantee the complicated one the question and issue about trust receipt relatively to involve also to escort to import, This text through the laws for continent is and their with importing not if escorting, gather together there aren't guarantee way inning at the transferenceguarantee and trust analysis , receipt of system of department not American and Frenches Great Britain The above-mentioned problems have proposed the suggestion on some legislation , judicial aspect. Main kind, export place of bank financing bill purchased and negotiable, this text make analysis and distinguish to practice and theory to difference , the two of concept at first, Need to use drafts in a large amount in negotiating the behavior, the payment of and the draft is linked to with the characteristic of the letter of credit closely but demonstrates with the respect with different ordinary draft, This text make more detailed analysis to draft of being negotiable, especially compare it with ordinary draft and distinguish, have carried on some valuable discussions in knowing the draft under the letter of credit correctly.Finally, direct against the legal question in the financing of above-mentioned letters of credit, this text put forward at legislative aspect drawing lessons from continent law transference guarantee systemming , department of countrying in order to establish our country movable property that the transformation occupy guarantee the system, Administration of justice practise aspect is it put goods entrust to bank occupy right , quality of thing indirectly still only to set free in bank, in order to ensure the right of the bank effectively , realize the law as the purpose of the economic construction service, Operate the system and take precautions against the legal risk for the design of bank with the maximum in the practice operates the aspect, perfect the note of our country and legislate, fully consider the letter of credit makes the particularity of the draft, relevant content of draft supplementary to reach negotiable instrument law letter of credit.