Purpose - This study examines the limitations of the practical application of letter of credit transactions requiring an on-board bill of lading under the FCA and presents opinions on the practical use of FCA-ruled bills of lading for letter of credit transactions. Design/methodology/approach -...

This paper discussed the prevailing issues currently faced by Islamic banks on the offering of Letter of Credit (LC), originally brought forward by the International Chamber of Commerce, using Shariah contracts and puts forth recommendations on practical solutions to solve the issues. The study...

This paper discussed the prevailing issues currently faced by Islamic banks on the offering of Letter of Credit (LC), originally brought forward by the International Chamber of Commerce, using Shariah contracts and puts forth recommendations on practical solutions to solve the issues. The study...

The advent of international business brought with it, its sophistications and one such is the cross jurisdictional facility of documentary letters of credit. This created a vacuum for regulation. To this, various international and municipal laws evolved. The question that arose with the...

Cash, as a means of money, is a mandatory component of the accounting system because accounting can only work with values, through which take place the generalization and expression of the reality of economic phenomena. From the point of view of cash classification, depending on the...

This study argues that the ability to mitigate risks associated with international trade is particularly important at times of heightened uncertainty, such as the economic crisis caused by the Covid-19 pandemic. Risk mitigation can be achieved through letters of credit (LCs), trade finance...

There is a saying that the traditional legal principles have been bent to facilitate the operations of the negotiable instruments such as bill of exchange or letter of credit. Most of the contenders are of the opinion that the instruments are completely contrary to the doctrine of consideration....

Die Zahlungssicherung im Export ist ein wesentlicher Aspekt in internationalen Geschäftsbeziehungen. In Abschnitt 2 werden internationale Zahlungsrisiken behandelt und es wird ein Überblick über internationale Zahlungsbedingungen gegeben. Der Schwerpunkt dieses Kapitels liegt in der...

Legislators have increasingly become concerned about their state’s economic well-being with regard to student loan debt, as state leadership has called for progressive action in reducing loan burdens among students (Ahlman & Gonzalez, 2019). One response to these calls has been to institute...

Cash, as a means of money, is a mandatory component of the accounting system because accounting can only work with values, through which take place the generalization and expression of the reality of economic phenomena. From the point of view of cash classification, depending on the...

This paper discusses how to treat the problematic existence of a non-documentary condition within a letter of credit that does not specify a required document to evidence its compliance. While the current Uniform Customs and Practices for Documentary Credits (UCP) simply direct banks to...

Letter of credit — a financial term, one of the types of payment instruments between the participants of export-import contract. Today the letter of credit is recognized by financiers in all over the world as the most universal way of payment in foreign economic activity. The letter of credit...

In this article, the author considers the implications of the blockchain technology for trade finance, in particular the letter of credit transaction and the escrow arrangement.The blockchain technology was invented to create the Bitcoin cryptocurrency around 2009. Since then, various types of...

This study provides evidence that shocks to the supply of trade finance have a causal effect on U.S. exports. The identification strategy exploits variation in the importance of banks as providers of letters of credit across countries. The larger a U.S. bank's share of the trade finance market...

Banks play a critical role in facilitating international trade by guaranteeing international payments and thereby reducing the risk of trade transactions. This paper employs banking data from the U.S. to document new empirical patterns regarding the use of letters of credit and similar bank...

This study provides evidence that shocks to the supply of trade finance have a causal effect on U.S. exports. The identification strategy exploits variation in the importance of banks as providers of letters of credit across countries. The larger a U.S. bank's share of the trade finance market...

The purpose of this paper is to review compliance rules in transactions involving documentary letters of credit. The principle of strict compliance used in most banks (as a tool to determine whether or not discrepant factors exist) has shown a tendency to take a pragmatic approach considering...

In this article Professor Dolan argues that the law should mandate attorney's fees in much letter of credit (“LC”) litigation. The argument rests on the notion that litigation itself, notwithstanding the results it obtains, transforms the LC, a unique commercial bank product, into an...

The following preface and chapter describe an effort to convince readers (business people, bankers, and lawyers) that the standby letter of credit is a handy, flexible, commercial device that can support virtually any business activity and often without a battery of lawyers or letter of credit...

This article addresses the insolvency of the letter of credit transaction's participants. In the first and second parts of a three-part article, which appeared in prior issues of The Banking Law Journal, the author discussed the insolvency of the beneficiary of the credit and the insolvency of...

This article inquires into the factors that affect the pricing of new issues of corporate tax-exempt bonds backed by standby letter of credit of U.S. and foreign commercial banks. Previous literature suggests that U.S. banks possess superior certifying ability in this market due to their unique...

La versión española de este documento se puede encontrar en 'http://ssrn.com/abstract= 2838854' http://ssrn.com/abstract=2838854 .For some authors “letters of credit” are not contracts; there is the perception that the obligation is unique in its characteristics and no principles of...

How relevant are financial instruments to manage risk in international trade for exporting? Employing a unique dataset of U.S. banks' trade finance claims by country, this paper estimates the effect of shocks to the supply of letters of credit on U.S. exports. We show that a one-standard...

When the credit crisis started in 2008, a total of 67 entrepreneurs sought advice with the European Centre of Managerial Studies in Business Administration of the Spiru Haret University in Bucharest in order to find alternatives to finance classic loans that could enable them perform their...

This article addresses the insolvency of the letter of credit transaction's participants. In the first part of this three-part article, which appeared in a prior issue of The Banking Law Journal, the author discussed the insolvency of the beneficiary of the credit. This second part addresses the...

This article addresses the insolvency of the letter of credit transaction's participants. In this first part of a three-part article, the author discusses the insolvency of the beneficiary of the credit. The second part and third parts of the article, which will be featured in upcoming issues of...

This study provides evidence that shocks to the supply of trade finance have a causal effect on U.S. exports. The identification strategy exploits variation in the importance of banks as providers of letters of credit across countries. The larger a U.S. bank's share of the trade finance market...

Banks play a critical role in facilitating international trade by guaranteeing international payments and thereby reducing the risk of trade transactions. This paper employs banking data from the U.S. to document new empirical patterns regarding the use of letters of credit and similar bank...

Banks play a critical role in international trade by providing trade finance products that reduce the risk of exporting. This paper employs two new data sets to shed light on the magnitude and structure of this business, which, as we show, is highly concentrated in a few large banks. The two...

This study provides evidence that shocks to the supply of trade finance have a causal effect on U.S. exports. The identification strategy exploits variation in the importance of banks as providers of letters of credit across countries. The larger a U.S. bank’s share of the trade finance market...

It is an undeniable notion that international traders have used letters of credit (LCs) as a basic form of trade payment, causing them to be called the lifeblood of international commerce. Their status, however, has been significantly undermined by the drastic shift from LCs to non-LCs in...

The paper examines the nature and scope of bank guarantee system and letter of credit in India. This paper is a doctrinal study which covers the law relating to the bank guarantees particularly embodied in the Indian Contract Act 1872, highlights the economic functions and benefits of the bank,...