There has been little litigation on matters of international finance, and in particular the use of documentary credits as a means of financing international trade, in Roman-Dutch law. This is ...evidenced by the paucity of judicial pronouncements both in South Africa and Botswana, countries which apply the Roman-Dutch common law. While documentary credits have assumed a central role in international trade worldwide, their legal import has not been without controversy and this has led to considerable litigation more especially in developed countries. This has not been the case with the less developed countries where the scale of international trade is very low, resulting in little litigation. Judge Gaefele's decision in African Handling Equipment Company v Monitor Kamaz Trucks (Pty) Ltd is of more than passing interest not only because it is the first decided case in Botswana in which the legal effect and consequences of documentary credits have been considered, a position recognised by Gaefele AJ, but also because of the issues raised and conclusions reached.
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Commercial letters of credit - Uniform Customs and Practice for Documentary Credits (1983 Revision) (UCP 400) - waiver of apparent discrepancies - "reasonable time" - banks must identify ...discrepancies when rejecting documents.
Pomorski tovarni list Ivković, Đorđe
Uporedno pomorsko pravo,
12/1994, Volume:
36, Issue:
141-144
Paper
Open access
Pomorski tovarni list (waybill) je čest dokument u praksi. Pomorski zakonik RH nema propisa o pomorskom tovarnom listu, iako se propisi o istom pojavljuju u Haškoj, Hamburškoj i Multimodalnoj ...konvenciji.
Međunarodni pomorski odbor CMI je donio posebna pravila o pomorskom tovarnom listu, a BIMCO i mnoge pomorske kompanije izdale su dokumente za tovarne listove.
U vezi s tovarnim listom, a sobzirom na činjenicu da su Haška pravila kod nas promulgirana, razmatra se njihova primjena ex proprio vigore, kao i situacija kad se Haška pravila, a eventualno i ostale konvencije i pravila CMI-a, uglavljuju kao lex contractus.
Analiziraju se CMI Pravila o pomorskom tovarnom listu. Pledira se za reguliranje tovarnog lista u Pomorskom zakoniku.
Banking fault are represented by the framework of a tort liability, which occurs when a bank breaches duty assigned to it based on laws and professional standards. And when it is related to a ...professional activity, every profession has standards that have to be taken into consideration. And if the responsible party could not implement its duties with caution, then the responsible party can cause harm to their customers. In return, customers have the right to be reimbursed only when they can prove the liability of the bank for the harm and the causal relationship between the bank and the customer. When fault attributed to the bank as a result of the civil responsibility on its personal actions or negligence of its employees or other mediating banks, the bank has a commitment to not breach its legal duty. And bank commitment can be in the form of taking caution to not harm their customers, or it takes the form of the special duty imposed by the legislator on the bank and its employees to combat money laundering.
PROTECTION AGAINST LETTERS OF CREDIT FRAUD Hussain, Sarfraz; Ahmed, Alim Al Ayub; Kurniullah, Ardhariksa Zukhruf ...
Journal of legal, ethical and regulatory issues,
01/2021, Volume:
24
Journal Article
Peer reviewed
Letters of Credit (Ls/C), the most common form of financing international commerce, have been a major source of worry for the whole international business world in recent years due to Ls/C fraud. ...Every year, the parties to the LS/C transaction lose billions of dollars due to fraud. A variety of reasons have led to the proliferation of such frauds. Many of them include the exclusive use of paper in international commerce, geographical distance in international trade, containerization, the usage of discounted Ls/C, and the absence of prosecution. Many academics and legal experts have been hesitant to interfere in Letter of Credit (Ls/C) transactions and have criticized local government regulations all around the globe. Allowing the courts to intervene with bankers' guarantees, according to government officials, may risk its integrity and make it more costly and ineffective than required. Due to a lack of regulation, recent research indicates that relevant organizations take certain measures to prevent Ls/C fraud, such as verifying the seller's reputation via well-known transportation services. Shipping, pre-shipment inspections, performance bonds, and electronic trade papers are all part of the process.
This article addresses the calculation of the notice of refusal period in UCP600. After briefly introducing the significance on the calculation of the notice period, the author discusses when the ...notice of refusal period begins to run, when it ends and whether a dispatch principle or receipt principle shall be taken for the calculation of the period.
Numerous disputes have arisen from frauds and Errors in the process of documentary credit transactions. This issue has caused an obstacle in financing international trade law and Cash flow in banks. ...It also imposes a huge cost on the banks. International Chamber of Commerce has created a new payment Method, called Bank Payment Obligation (BPO), in order to address this problem. By introducing an electronic system through Bank Payment Obligation, International Chamber of Commerce has endeavoured to deal with ambiguous and uncovered areas of documentary credit. To assess whether this new method (BPO) would be able to offer a solution to the problem of fraud and Errors in documentary credit transactions, this article examines documentary credit by discussing relevant case law and by identifying the extent to which Bank Payment Obligation would respond to existing problems. It concludes that although Bank Payment Obligation has a number of similarities with Documentary Credit, its structure and nature in optimal conditions would be able, to a large extent to prevent fraud and Errors in international payment and reduce disputes in this field accordingly.
In order to deal with existing problems in relation to documentary credit and electronic documentary credit, International of Chamber of Commerce (ICC), in cooperation with Swift and ISO, strived to ...adopt a new payment system, called: Bank Payment Obligation (BPO). The main part of the BPO relates to data presented electronically to the bank by the seller. The role of the bank is to transfer the data to Trade Matching Application (TMA) in order to comply with the terms of BPO and to clear the payment. The purpose of the BPO is to minimize the risks associated with traditional documentary credit system, and to reduce the time and cost for examining data and proceeding with the payment. By conducting a comparative assessment, this article aims to illustrate problems pertaining to documentary credit problems by examining the limitations of the documentary credit system, and to discuss whether the BPO could address these problems. Although it remains to be seen whether the BPO could be regarded as an appropriate system, it would seem that the BPO may not meet the needs of international trade.
It is difficult to meet the financial risks in a particular institution, as it is in banks. As the banking system develops and the services provided by banks expand and the risks are increasing, the ...risks facing banks are also increasing. There are many financial risks in banks, but the credit risk comes first because the process of granting credit by the bank is one of the most important and more dangerous of what a commercial bank does, since it is always accompanied by risks, the Bank expects in every credit transaction that customers will not meet their obligations or at least on their specified dates. In some cases, the customer is unable to pay off his debt or maybe late in payment. This process is repeated due to unforeseen circumstances and this may create many difficulties for the bank. Many experiences have shown that there is no risk-free credit whatever the guarantees. Even if the bank is careful in all credit-granting rules, the circumstances may be beyond the will of both the bank and the client, as the credit operations take a period of time to On non-activity, a process with a high degree of risk, and therefore it can not be categorically stated that a particular credit operation is completely risk-free.
This book looks at the historical use of allegations of unconscionable conduct within the context of independent trade finance instruments, such as letters of credit and demand guarantees. It makes a ...detailed survey of the law of unconscionable conduct, the complexities of the doctrine of independence, and the circumstances where the former prevails to provide relief from abuse.It also completes a wide-ranging, sequential audit of the relevant case law in both Singapore and Australia where unconscionable conduct was alleged in independent instrument matters. The audit examines every case along the lines of precedent and details the contribution each makes to the law.Focussing on the jurisdictions of Singapore, Australia, and Malaysia, the book lays out the case for the broad adoption of unconscionable conduct in this domain. With its premises founded in precedent and statute, it describes the elements of independent instrument unconscionability as already laid down in law and links it to international banking practice.
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