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How
to make sense of Letter of Credit cases
Paris,
3 January 2005
-- Today, more than 15% of world trade is financed using letters of credit.
ICC kicks off the new year with the launch of Leading Court Cases on
Letters of Credit whose author, King Tak Fung, spoke to ICC to explain
why he felt compelled to write it.
What inspired you
to write this book?
Fung: As an
ex-banker and a current legal practitioner specializing in banking and
international trade finance law and practice, I have noticed that many
letters of credit (L/Cs) enquiries raised by bankers, lawyers and trade
finance practitioners in different countries are, in fact, very similar.
This reflects that certain issues covered by the ICC rules on documentary
credits (UCP) may require some further explanation.
What are some of
the common interest issues to L/C practitioners in different countries?
Fung: There
are several. First, credits v. contracts: can a beneficiary claim the
purchase price of the goods under a sales contract if the export documents
presented under an L/C are rejected due to discrepancies? Second, confirmation:
is a confirming bank liable to pay under an L/C if the discrepant documents
are subsequently accepted by the issuing bank? Third, availability and
bills of exchange: how does one make a deferred payment and acceptance
credit negotiable and rectify the misconceptions about "negotiation"?
And there are others - concerning marine bills of lading, standbys, fraud
and injunctions, etc. - that you will also find in this book.
How can the book
help?
Fung: By comparing
and/or contrasting the leading L/C cases decided by the English, US, Hong
Kong, Singapore, PRC and South Korean courts, I have tried to help readers
find the correct interpretation of the UCP and proper L/C practice.
What is unique
about this book?
Fung: Often,
court judgments are long and technical. The objective of writing this
book was to provide a user-friendly, concise and practical guide for L/C
practitioners in respect of some highly controversial L/C court cases.
Each chapter is divided into three parts:
(a) The "Summary of Facts" section provides a one-page flow
chart summarizing the material facts of the case in a highly readable
format.
(b) The "Key Issues" section analyzes the critical issues of
each case by using questions and answers and quoting the relevant parts
of the judgment so that readers do not have to look into the full text.
(c) The "Comments" section explains whether the court decisions
are in line with the spirit of the UCP and highlights the ramifications
of each decision from legal, banking and commercial perspectives.
I believe readers
will find that Leading Court Cases on
Letters of Credit offers them a fresh
look at a complicated topic and gives some important tips about L/C practice.
Visit the ICC
Bookstore now to order your copy of Leading
Court Cases on Letters of Credit.
ICC
Business Bookstore
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