Banking and Insurance Law Essay Example | Topics and Well Written Essays - 2750 words

Banking and Insurance Law - Essay ExampleLetters of Credit (LCs) is an instrument of maritime distribute which has long been acclaimed as the nerve middle of international trade. LCs are not contracts or surety ship obligations or negotiable instruments or an agency agreements, but separate independent obligations to be interpreted on their own terms and conditions without reference to any other documents. ... or non-performance transfer, assignment and back-to-back LCs wrongful dishonor and anticipatory repudiation of it etc.UCPDC have skillful rounded-up the standardized procedures and definitions on types of credit, teletransmitted and pre-advised credits, standard for examination of documents, discrepant documents and notice, disclaimer on effectiveness of documents, disclaimer on the transmission of messages, Force Majeure, bank-to-bank reimbursement arrangements, ambiguity as to the issuers of documents, unspecified, issuers or contents of documents, issuance date of documen ts v. credit date, Marine/Ocean Bill of Lading, Non-Negotiable Sea Waybill, Charter Party Bill of Lading, Multimodal Transport Document, Air Transport Document, Road, direct or Inland Waterway Transport Documents, Courier and Post Receipts, Transport Documents Issued by Freight Forwarders, On Deck, Shippers Load and Count, Name of Consignor, Clean Transport Documents,Freight due/Prepaid Transport Documents, Insurance Documents, Type of Insurance Cover, Commercial Invoices etc (UCPDC 500, 1993).In fact complete codified instructions on documentary credits can be had only through joint readings of the UCPDC and universal commercial codes (UCC). Despite the support of uniformity and standardization provided by provisions of UCPDC and UCC disputed transactions have big(p) multifold in maritime trade. Some of these disputes were genuine trade disputes and could be resolved by fulfillment of deficiencies whereas a good number of them were categorized as trade malpractices with the prim ary objective of defrauding the other part(ies).It is the latter category of documentary credit transactions which forms the focus of this paper and the general leeway given to fraudulent parties by English