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 oceanic trade which has long been acclaimed as the nerve center of international trade. LCs are not contracts or hostage ship obligations or negotiable instruments or an agency agreements, but separate independent obligations to be construe 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 technical rounded-up the standardized procedures and definitions on types of credit, teletransmitted and pre-advised credits, standard for examination of documents, unfitting 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 documents v. credit date, Marine/Ocean Bill of Lading, Non-Negotiable Sea Waybill, Charter party Bill of Lading, Multimodal Transport Document, Air Transport Document, Road, Rail 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 collectable/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 mercantile codes (UCC). Despite the support of uniformity and standardization provided by provisions of UCPDC and UCC disputed transactions have self-aggrandizing 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 primary objective of defrauding the other part(ies).It is the latter crime syndicate of documentary credit transactions which forms the focus of this paper and the general leeway given to fraudulent parties by English