Documentary credits.

TomThomas · Post by **TomThomas** » Mon Apr 23, 2001 1:00 am

When should be a bank prevented from paying and a beneficiary prevented from collecting under letter of credit or performance bonds

vobrien · Post by **vobrien** » Wed Apr 25, 2001 1:00 am

This is a complex area and I believe your question has a legal angle.

Courts are slow to intervene and prevent settlement under DC's given their abstract nature as an independent undertaking.

However, in the case of established fraud, courts (including UK) have intervened to prevent settlement.

[edited 4/30/01 10:04:51 AM by sean (Moderator)]

T.O.Lee · Post by **T.O.Lee** » Tue May 08, 2001 1:00 am

As Vincent said, the fraud issue is a very complicated one. And fraud is a legal issue that the ICC Banking Commission tries its best to avoid and leaves a court of law to adjudicate, since the UCP 500 and other ICC rules are not law.

I am from www.tolee.com

[edited 5/22/01 5:28:32 PM]