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Discuss the fraud exception within the context of the law on L/C.
Compare…
Discuss the fraud exception within the context of the law on L/C.
Compare and contrast with the developing doctrine of unconscionability in the area of PB
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The burden of proof:
Dilemma:
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Too wide will break the independence doctrine:Requiring proof of default would defeat the purpose of the independent guarantee+Undesirable as it would require bank to make investigations and assessments beyond its normal sphere of operation which is time consuming and uncertain
the ideal:
Provide sufficient evidence to prove that fraud has existed, but does not require the parties to provide comprehensive and absolute evidence
the Exceptions of the fraud exceptions:
Take the United States Uniform Commercial Code as an example. The law stipulates that in some cases, the issuing bank must pay regardless of whether there is fraud.
The person requesting the redemption of the bill is the designated person of the issuing bank, who has paid the consideration in good faith and has not been notified that the document is forged or fraudulent.
The person is a confirming bank and the confirming bank has performed the confirmation in good faith in accordance with the confirming obligation.
The person is the proper bearer of the bill of exchange opened under the letter of credit and the bill has been accepted by the issuer or a designated bank.
The person is the assignor of the deferred payment obligation or the assignee of the nominated person, and the assignee of the credit interest pays the consideration after the payment obligation of the issuer or the nominated person occurs and obtains the document and There is no notice of the fact that the document is forged or the document is essentially fraudulent
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