Letters of Credit in UK Law
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Intraco Ltd v Notis Shipping Corporation (Bhoja Trader)
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Irrevocable letters of credit and bank guarantees given in circumstances such that they are the equivalent of an irrevocable letter of credit have been said to be the life blood of commerce. Thrombosis will occur if, unless fraud is involved, the Courts intervene and thereby disturb the mercantile practice of treating rights thereunder as being the equivalent of cash in hand.
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Owen (Edward) Engineering Ltd v Barclays Bank International Ltd
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A bank which gives a performance guarantee must honour that guarantee according to its terms. It is not concerned in the least with the relations between the supplier and the customer; nor with the question whether the supplier has performed his contracts obligation or not; nor with the questionwhether the supplier is in default or not. The bank must pay according to its guarantee, on demand, if so stipulated, without proof or conditions.
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Bolivinter Oil S.A. v Chase Manhattan Bank N.A. (Practice Note)
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The wholly exceptional case where an injunction may be granted is where it is proved that the bank knows that any demand for payment already made or which may thereafter be made will clearly be fraudulent. But the evidence must be clear, both as to the fact of fraud and as to the bank's knowledge.
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Taurus Petroleum Ltd (Claimant/Appellant) v State Oil Company of the Ministry of Oil, Republic of Iraq
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He pointed out that the assignment by way of charge between Wills and the second and third creditors was binding as between them and that the equitable doctrine of notice was concerned only to determine priority between competing incumbrancers. To allow the garnishee order to override the charges would enable the judgment debtor to obtain not the property of the judgment debtor, but that of someone else.
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Power Curber International Ltd v National Bank of Kuwait S.A.K.
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If the court of any of the countries should interfere with the obligations of one of its banks (by ordering it not to pay under a letter of credit) it would strike at the very heart of that country's international trade. No foreign seller would supply goods to that country on letters of credit—because he could no longer be confident of being paid. No trader would accept a letter of credit issued by a bank of that country if it might be ordered by its courts not to pay.
A debt is generally to be looked upon as situate in the country where it is properly recoverable or can be enforced and it is noteworthy that the sellers here submitted voluntarily to the dismissal of their earlier proceedings against the bank in North Carolina.
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Group Josi RE (formerly Groupe Josi Réassurance S.A.) v Walbrook Insurance Company Ltd
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"Have the plaintiffs established that it is seriously arguable that, on the material available, the only realistic inference is that [the beneficiary] could not honestly have believed in the validity of its demands on the [letter of credit].
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Sanctions and Anti-Money Laundering Act 2018
...... (e) (e) credit, rights of set-off, guarantees, performance bonds and other financial itments; . (f) (f) letters of credit, bills of lading and bills of sale; . (g) (g) documents ......
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Joint Stock Companies Act 1856
......Private Act of Parliament or by Royal Charter or Letters Patent, or are engaged in working Mines. within and subject to the ..., and in all Bills of Parcels, Invoices, Receipts, and Letters of Credit of the Company. S-XXXI . Penalties on Non-publication of Name. XXXI ......
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The Contracts for Difference (Electricity Supplier Obligations) Regulations 2014
...... “letter of credit” means a letter from a person which contains an irrevocable and ... (a) (a) cash; . (b) (b) appropriate letters of credit; or . (c) (c) a combination of the two. . (8) For the purposes ......
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The Burma and Somalia (Sanctions) (Overseas Territories) (Amendment) Order 2018
...... (e) credit, rights of set-off, guarantees, performance bonds or other financial tments, . (f) letters of credit, bills of lading and bills of sale, . (g) documents showing ......
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Letters of Credit
The letter of credit is commonly utilised when an exporter has doubts regarding the prospects of receiving payment. It is essential that all possible precautions are taken to ensure that the letter...
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Computer Systems Acquisition and the Use of Letters of Credit
Letters of credit are commonly used today to facilitate commercial transactions of all types between wary sellers and buyers, both of whom are, for one reason or another, reluctant to initiate the ...
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Corporate letters of credit and their usage as an instrument for fraud
Purpose: This paper seeks to examine the differences between traditional documentary credits and corporate issued documentary credits and to show the effects of these differences on the application...
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Managing money laundering risks in commercial letters of credit. Are banks in danger of non-compliance? A case study of the United Kingdom
Purpose: The purpose of this paper is to critically examine the role of banks in detecting and mitigating money laundering risks in trade finance activities, especially in commercial letters of cre...
- Letters Of Credit & Sanctions
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Letters of Credit: Autonomy Principle is Re-confirmed
The Court of Appeal has confirmed the "autonomy principle" of letters of credit under English law, holding that PetroSaudi Oil Services (Venezuela) Ltd ("PetroSaudi") and its director and General C...
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Third party debt orders and letters of credit
The Supreme Court decided that the legal ‘location’ (situs) of a debt due under a letter of credit is the place of residence of the debtor, not where the debt is due to be paid. The decision opens ...
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Situs of Debt Owed under Letters of Credit
Supreme Court of England clarifies terms for enforcement of international arbitral awards in Taurus Petroleum Limited v State Oil Marketing Company of the Ministry of Oil, Republic of Iraq [2017] U...
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Chapter MLR3C2084
......’ in this context refers to banking industry products such as letters of credit and undrawn lending commitments. Some commercial finance ......
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Chapter OT28615
...... settlement, whether money or alternative provision such as standby letters of credit was, prior to FA2013, settled property for Inheritance Tax ......
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Chapter OT28601
......letters of credit. Where adopted the DSA provides for implementation of security ......
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Chapter IEIM400740
...... entities regulated in the UK as a savings or commercial bank, a credit union, industrial and provident societies and building societies. In ... Issues letters of credit and negotiates drafts drawn thereunder;. Provides trust or ......