Letter Of Credit as a Payment Instrument of the Export-Import Deal

2020 ◽  
Author(s):  
Nadezda Butakova
Keyword(s):  
Letter Of Credit

Konkursanfechtungsrechtliche Probleme im Zusammenhang mit dem Standby Letter of Credit

1990 ◽  
Vol 2 (4) ◽  
Author(s):  
Christoph Paulus
Keyword(s):  
Letter Of Credit ◽  
Wenn Sich

Ein paar amerikanische Entscheidungen jüngeren Datums haben eine Gefährdung des konkursrechtlichen Grundsatzes der Gleichbehandlung aller Gläubiger offengelegt. Wenn sich nämlich ein Gläubiger innerhalb der kritischen Zeitspanne einen standby letter of credit ausbedingt und diesen nach Eröffnung des Konkursverfahrens über das Vermögen des Schuldners von dessen Bank honoriert erhält, erlangt er volle Befriedigung zu Lasten der Konkursgläubiger; denn die Bank kann sich in aller Regel aus ihren vorhandenen Sicherheiten befriedigen. Die anfechtungsrechtlichen Probleme ergeben sich vornehmlich aus der Mittelbarkeit der Zuwendung an den Gläubiger. Der nachfolgende Beitrag zeigt, wie die amerikanischen Gerichte diese Fälle lösen und wie sie nach deutschem (geltenden und zukünftigen) Recht zu entscheiden wären. Darüber hinaus wird die Frage erörtert, nach welchem Recht eine Konkursanfechtung durchzuführen ist, wenn der standby letter of credit über die nationalen Grenzen hinaus ausgestellt wird

PRINCIPLE OF AUTONOMY IN LETTER OF CREDIT: MALAYSIAN PRACTICE

2012 ◽  
Vol 19 (2) ◽  
Author(s):  
Rosmawani Che Hashim ◽  
Ahmad Azam Othman ◽  
Akhtarzaite Abdul Aziz
Keyword(s):  
International Trade ◽  
Significant Role ◽  
Case Law ◽  
Huge Amount ◽  
Letter Of Credit ◽  
Relevant Case ◽  
Method Of Payment ◽  
Almost All

The term letter of credit (LC) is not uncommon in international trade as it is the most frequently used method of payment by seller and buyer in their sales contract. LC serves its significant role by facilitating payment between buyer and seller from different countries, who are always prejudiced towards each other on the issue of payment, especially when the deal involves a huge amount of money. By using LC, the seller and buyer will be represented by their own bankers whose function, among others is to issue an LC for the buyer and pay on presentation of seller’s documents which strictly comply to LC requirements. It is well-known that LC is governed by the principle of autonomy or also referred to as the principle of independence1 which indicates LC, being a contract of payment is totally separate from the underlying sales contract. Banks are concerned with documents only and not with the goods. LC transaction can be governed by the Uniform Custom and Practice for Documentary Credit, known as the UCP through express incorporation which provides the rules relating to LC matters and is adopted in almost all LC transactions. This paper discusses the nature, background and significance of principle of autonomy in LC transaction. In elaborating the provisions on the principle of autonomy in the UCP 600, comparisons between relevant articles in the UCP 500 are highlighted. The discussion also focuses on relevant case law and on the application of the autonomy principle in conventional and Islamic LC. The paper concludes with the finding that Malaysian bankers fully subscribe to the principle of autonomy as outlined by the UCP 600.

The Right of the Beneficiary under a Commercial Letter of Credit

1924 ◽  
Vol 37 (3) ◽  
pp. 323
Author(s):  
William E. McCurdy
Keyword(s):  
Letter Of Credit ◽  
The Right

scholarly journals An Issue on Uniform Customs and Practice for Documentary Credits (UCP) No 600 for Islamic Letter of Credit

2013 ◽  
Vol 7 ◽  
pp. 126-133 ◽  
Author(s):  
Sharifah Faigah Syed Alwi ◽  
Uzaimah Ibrahim ◽  
Mohd Fuad Sawari
Keyword(s):  
Letter Of Credit

scholarly journals Efficient Financing, Banking, and Foreign Exchange Operations in Mitigating Refined Petroleum Shortages In Nigerian Downstream Petroleum Supply Industry

2019 ◽  
pp. 1-9
Author(s):  
Dr. Itsekor Lucky Ubini
Keyword(s):  
Supply Chain ◽  
Foreign Exchange ◽  
Poverty Reduction ◽  
Management Strategies ◽  
Petroleum Products ◽  
Study Data ◽  
Letter Of Credit ◽  
Product Availability ◽  
Niger Delta Region ◽  
Strategic Role

Eve ry enterprise in Nigeria depends on refined petroleum product for either transportation, power, or heat source.The recurrent shortages or scarcity of petroleum products in Nigeria cripples business activities, which undermines the development of the economy. The purpose of this multiple case study was to identify the strategic role of finance, banks, and foreign exchange in mitigating petroleum shortages in the petroleum supply chain and to sustain business development in Nigeria. The study participants include ten senior leaders from two private-sector Nigerian downstream petroleum supply companies located in the Niger Delta region, who had successfully implemented strategies for petroleum supply. The resource based view theory served as the conceptual framework for the study. Data were collected through semi structured face-to-face interviews and review of operational and policy documents from the supply or marketing companies. Data were transcribed, analyzed, and validated through member checking and triangulation. The findings indicate that petroleum leaders must engage with efficient banks to obtain loans or letter of credit, liquidate letter of credit on time, obtain foreign exchange at best rates, and avoid documentation hitches and delays on international transactions.Findings may be used by petroleum business leaders and investors to create effective and efficient financial resource management strategies in the supply chain, leading to product availability, sustainability, poverty reduction, and economic development.

scholarly journals PREVENTIVE MEASURES TO MITIGATE THE RISK OF FRAUD IN LETTERS OF CREDIT TRANSACTIONS IN MALAYSIA

2021 ◽  
Vol 12 (Number 1) ◽  
pp. 27-49
Author(s):  
Rushmila Bintay Rafique ◽  
A. Vijayalakshmi Venugopal
Keyword(s):  
Preventive Measures ◽  
Credit System ◽  
Letter Of Credit ◽  
Full Compliance ◽  
Global Standards ◽  
Depth Analysis ◽  
International Trading ◽  
Standard Of Practice ◽  
Letters Of Credit ◽  
Primary Focus

This article attempts to analyse the issue of fraud in letters of credit (LC) transactions, also known as documentary credits. There are numerous reported cases of fraud in LC transactions, which remain a continuing risk. The UCP 600 is a popular standard of practice for banks, which confirms that banks must honour payment to the seller upon full compliance with the documentary credit requirements. Such payments have been made despite being presented with falsified documents or substandard goods being delivered. It might not be realistic to expect that the International Chamber of Commerce (ICC) can create global standards relating documentary credits, which cover the practicalities of the existing system and relevant legalities applicable to the letter of credit system in international trading. Each party involved may have a responsibility to take some preventive measures to mitigate the risk of fraud. The doctrinal method is used to conduct this study because it involves an in-depth analysis of the gap within the Malaysian system and the strategies that maybe be adopted to overcome the risks associated with LC fraud. Findings reveal that LC documents can be easily falsified, and the occurrence of LC fraud is not uncommon in Malaysia. However, given the lack of literature it has not been highlighted in the past couple of years. The primary focus of this article is to suggest preventive measures that the respective parties could take to protect themselves from fraudulent dealings involving LCs.

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