What national laws have to say about documentary...What national laws have to say about documentary...

 
 
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What national laws have to say about documentary credits

Co-Author Dr Gabriele Fontane: "National laws on documentary credits are just as important as the UCP."

Paris, 21 December 2001 - The first-ever compilation of national laws relating to documentary credits has just been published - essential reading for practitioners of this basic tool for financing international trade.

Documentary Credit Law may be purchased from ICC Publishing, the world business organization's own publishing arm in Paris, from ICC national committees throughout the world, or ordered online from the ICC Business Bookstore.

Banks have been applying ICC's Uniform Customs and Practice for Documentary Credits (UCP), the rules governing letters of credit worldwide, since 1933. The most recent version of the Rules, known as UCP 500, came into force on 1 January 1994.

Written into virtually every letter of credit, the UCP are accepted throughout the world to transfer billions of dollars every year from buyers to sellers in payment for goods and services.

As contractual rules, the UCP do not cover all issues relating to letters of credit. Key issues left to the applicable national law include questions concerning the statute of limitations, force majeure and fraud. Some national laws include provisions that run counter to the UCP.

This is why a practitioner needs to know not only the UCP itself, but also relevant national laws, Written by two lawyers specializing in this field*, Documentary Credit Law is a must for practitioners, academics, lawyers, bankers and all who deal with letters of credit. Co-author Dr Gabriele Fontane explains: "National laws on documentary credits are just as important as the UCP since they apply in addition to the UCP."

The book recounts the history of the UCP, and interprets how the various types of credits - deferred payment, back-to-back, etc. - are used, linking the UCP to court decisions worldwide.

Even countries with no laws on documentary credits are covered by footnotes citing relevant court decisions and supporting documents.

*Professor Dr Rolf A Sch&uu ml;tze and Dr Gabriele Fontane

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