Law Commons^™

Implications Of Adopting Blockchain Technology On International Sales Transactions, Gregory Benson Jr.

Northern Illinois University Law Review

While technologies evolve, international laws with ancient roots must be updated, in order to better suit the needs of a modern world. One new technology, which has sent shockwaves into international and domestic law, is blockchain and its applicability to many facets of domestic and international business. This Comment analyzes how the letters of credit and international sales transactions would be impacted if the Uniform Customs and Practices published by the International Chamber of Commerce were to adopt blockchain technology. More specifically, the Comment analyzes how smart contracts would instill the same amount of trust on both sides of a …

Fraud, Letters Of Credit, And The Uniform Commercial Code: It Is Time To Untether The Independence Principle, Richard Flint

Faculty Articles

The purpose of this Article is to evaluate the efficacy of the fraud exception to the independence principle in letters of credit law in the case of both commercial and standby letters of credit. In doing so, a primary focus will be to identify which of the various parties to a letter of credit transaction the present fraud exception "protects" and to evaluate the policy justifications for why these persons are viewed by the law to be eligible recipients of protection.

Annual Survey Of Developments In International Trade Law: 1983, Georgia Journal Of International And Comparative Law

Georgia Journal of International & Comparative Law

No abstract provided.

Fairness At The Expense Of Commercial Certainty: The International Emergence Of Unconscionability And Illegality As Exceptions To The Independence Principle Of Letters Of Credit And Bank Guarantees, Roger J. Johns, Mark S. Blodgett

Northern Illinois University Law Review

International transactions involve an array of risks. A persistent risk in individual commercial transactions occurs when parties do not know each other well enough to trust each other. Letters of credit and bank guarantees manage this transaction risk by shifting it onto trusted independent third parties. The value of these instruments rests upon the reliability of performance by such third parties, and that depends, in part, on the degree of judicial reluctance to enjoin their performance. To the extent one party to an underlying transaction believes the other can control the third party through injunction, the value of the third …

Implementing The Standby Letter For Credit Convention With The Law Of Wyoming, James J. White

Articles

For the first time in American practice, we propose to implement a convention by a federal adoption of law previously enacted by the states – from Wyoming to New York – to implement the Convention on Independent Guarantees and Standby Letters of Credit (“Convention”).1

The Unique Jurisprudence Of Letters Of Credit: Its Origin And Sources, Gao Xiang, Ross P. Buckley

San Diego International Law Journal

This Article seeks to illumine the legal nature of the letter of credit instrument, and catalogue the various sources of law and rules that can govern it; and, by doing so, render a service to those who must quickly come to grips with letter of credit law. The Article is in two parts. The first part examines the legal nature of the letter of credit by looking at its definition, operation, and history and by comparing it with negotiable instruments and contracts. The second part considers the rules, customs, and regulations governing letters of credit and introduces the two fundamental …

A Comparative Analysis Of The Standard Of Fraud Required Under The Fraud Rule In Letter Of Credit Law, Gao Xiang, Ross P. Buckley

Duke Journal of Comparative & International Law

No abstract provided.

Article 5 - Recent Developments, James J. White

Other Publications

I. Mitigation in Letter of Credit Transactions Assume a Buyer has procured a letter of credit to pay for contracted goods but no longer wants the goods. The Buyer and the Issuer would like to force the Beneficiary to mitigate. Assume that both the Issuer and Applicant repudiate their obligation or that the Applicant has failed and the Issuer repudiates its obligation to pay under the letter of credit. At the moment of repudiation the price for a gallon of the underlying oil that is the subject of the letter of credit is $.75 and that the letter of credit …

Between Iraq And A Hard Place: Letter Of Credit Litigation Following The Gulf War, David Seligman

University of Miami Business Law Review

No abstract provided.

Letters Of Credit: Highlights Of Revised Article 5, Edwin E. Smith, James J. White

Other Publications

1. Under what circumstances is it bad faith for an issuer to honor a letter of credit in the face of an applicant's offer of proof of fraud by the beneficiary? 2. What is the issuer's obligation where there is a waiver by the applicant that the issue chooses not to honor? 3. What are the rights of transferees of transferable letters of credit and assigness of proceeds?

Rights Of Subrogation In Letters Of Credit Transactions, James J. White

Articles

The past twenty years have seen more than a dozen cases, in which parties to letter of credit transactions have sought subrogation to the rights of the person they have paid or to the rights of the persons on behalf of whom, they have acted.' The most obvious case arises when the issuer of a standby letter of credit pays a beneficiary on a debt that is owed to the beneficiary by a bankrupt applicant. Having failed to take 'collateral from the applicant, the issuer seeks to be subrogated to the security interest of the beneficiary. Failing subrogation, the issuer …

The Influence Of International Practice On The Revision Of Article 5 Of The Ucc, James J. White

Articles

The topic of this symposium is the influence that international law has had on domestic law of the United States. I believe that the story of the revision of Article 5 of the Uniform Commercial Code fits here, but some might dispute that. Although it is certainly fair to say that international practice-in a sense international law-was a powerful influence on the revision of Article 5 of the Uniform Commercial Code, that practice, and the way in which that influence was exerted were almost entirely sui generis to the letter of credit law, practice and history.

Silencing The Loose Cannon: The Need For The Bankruptcy Code To Recognize Letters Of Credit, Juliet M. Moringiello

Juliet M. Moringiello

No abstract provided.

Wysko Investment Company V. Great American Bank: A New Attack On The Usefulness Of Letters Of Credit, Robert Jay Gavigan

Northwestern Journal of International Law & Business

The letter of credit has long been accepted as a valuable instrument of assured payment in international business. In Wysko Investment v. Great American Bank, however, an Arizona district court jeopardized the usefulness of the letter of credit transaction by enjoining payment to the beneficiary after the issuing party became insolvent.' This note addresses the issue of whether a bankruptcy court has the power to enjoin payment of a letter of credit issued by the debtor's principal, pursuant to 11 U.S.C. § 105(a), when the court finds the injunction necessary for the debtor's reorganization. Further, this note examines whether such …

The Paperless Letter Of Credit And Related Documents Of Title, Boris Kozolchyk

Law and Contemporary Problems

A normative analysis of paperless letters of credit that will categorize the various transactions and delineate the boundaries and relative standing of the competing sets of rules is now appropriate. The analysis will suggest when an official rule is needed and what its character should be.

Gulf South Bank & Trust Company V. Holden: A Warning To Bankers Honoring Letters Of Credit, Tracy L. Howard

Louisiana Law Review

No abstract provided.

Basic Uniform Commercial Code: Teaching Materials, David G. Epstein

Law Faculty Publications

These materials cover extensions of credit secured by a lien on personal property, sales of goods, commercial paper, credit cards, electronic funds transfer systems, and letters of credit. Some aspects of these subjects are regulated by federal statutes; some aspects are covered only by judicial decisions. Notwithstanding the important body of federal law and common law, the Uniform Commercial Code dominates this book.

Fdic V. Philadelphia Gear: A Standby Letter Of Credit Backed By A Contingent Promissory Note Is Not A Deposit-The Supreme Court Changes Gear, Brett Paul, Andrew Peretz

University of Miami Law Review

No abstract provided.

Letters Of Credit: A Primer, Christopher Leon

Maryland Law Review

No abstract provided.

Letter Of Credit: Gold Bullion?, Laura K. Austin

Louisiana Law Review

No abstract provided.

Fraud And Injunctive Relief In International Standby Letter Of Credit Transactions: A Comparative Study, Dirk H. Mahler

LLM Theses and Essays

This study attempts to compare the various concepts which have been developed under U.S. and German law, focusing in particular the interpretation of fraud and the prerequisites for injunctive relief. Comparative analysis of case law, statutory provisions and corresponding commentaries will illustrate that although evolved out of different legal backgrounds the results show only minor deviations, a phenomenon which might support the hypothesis that instruments developed by practitioners to serve international commercial needs tend to give birth to uniform internationalized legal treatment.

Fraud In The International Transaction: Enjoining Payment Of Letters Of Credit In International Transactions, Stephen J. Leacock

Vanderbilt Journal of Transnational Law

The Sztejn principles present to issuing banks a perplexing dilemma in international letter of credit transactions. Issuing banks that have received notice of fraud in the underlying transaction may yet be presented with documents that apparently conform to the letter of credit requirements by a seller who is not a holder in due course. If the bank refuses payment and a court determines that the fraud was not sufficiently egregious, the bank will be liable for breach of contract between the bank and the seller. But if the bank relies on the doctrine of separation and pays the draft, and …

Letters Of Credit In East-West Trade: Soviet Reception Of Capitalist Custom, George M. Armstrong, Jr.

Vanderbilt Journal of Transnational Law

This Article examines the Soviet system for financing the purchase and sale of goods by a Soviet enterprise from a Western merchant. This Article is organized chronologically, commencing with the initial contact between a Western merchant and an FTO, the merchant's liaison with Soviet industrial enterprises.

The Article examines the role of the FTO in mediating relations between Soviet enterprises and their Western contracting partners. It then examines the procedures employed by the Bank for Foreign Trade to establish the credit, to handle the documentary transaction, and to determine whether to honor the seller's demand for payment. The Article finally …

Letters Of Credit: A Solution To The Problem Of Documentary Compliance , Jonathan D. Thier

Fordham Law Review

No abstract provided.

Judicial Development Of Letters Of Credit Law: A Reappraisal, Steven T. Kolyer

Cornell Law Review

No abstract provided.

Legal Aspects Of Letters Of Credit And Related Secured Transactions, Boris Kozolchyk

University of Miami Inter-American Law Review

No abstract provided.

Letters Of Credit: Current Theories And Usages, David Richard Taggart

Louisiana Law Review

No abstract provided.

Article 5 Of The Uniform Commercial Code, Norman Penney

Louisiana Law Review

No abstract provided.

Letters Of Credit And The West Virginia Law, Stanley E. Dadisman

West Virginia Law Review

No abstract provided.