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...

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...

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...

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...

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...

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...

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...

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...

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...

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...

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 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 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...

International trade exposes exporters and importers to substantial risks. To mitigate these risks, firms can buy special trade finance products from banks. This paper explores under which conditions and to what extent firms use these products. We find that letters of credit and documentary...

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...

United States District Court for the Southern District of New York's ruling in American Express Bank Ltd. v. Banco Espanol de Credito unduly circumscribed the independence principle by making the ability of local banks to obtain payment under their counter-guarantees/counter-standbys be...

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,...

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 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...

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 argued that, to a businessman nothing is simpler than an irrevocable letter of credit transaction; he or she never thinks about the nature of the obligation incurred by the issuing bank. However, significant uncertainty, ambiguity as to the nature of the obligation arises when lawyers,...

This article examines the preference issues that can confront a creditor that held a standby letter of credit to secure a debtor's obligations where the debtor performed its obligations in the 90-day preference period prior to bankruptcy. The article discusses the decision in In re Powerine, 59...

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...

In this paper, an endeavor has been made to address the intricacies involved in an international transaction by a Letter of Credit, the different types of Letters of Credit, and the differing obligations of the buyer and seller attached to each of the transactions. In the course of my...

his article addresses the phenomenon of document discrepancies in international trade financing as a significant worldwide issue resulting in unnecessary delays, refused payments, and financial loss when banks discover discrepancies in required trade finance documents presented under the...

International trade exposes exporters and importers to substantial risks. To mitigate these risks, firms can buy special trade finance products from banks. This paper explores under which conditions and to what extent firms use these products. We find that letters of credit and documentary...

While the motivation and riskiness of US off-balance sheet banking activities have been studied both theoretically and empirically, no such study has been found dealing with Canadian off-balance sheet banking activities, although such activities are numerically huge, and growing larger each...