Substitutes for letters of credit sales: a seller's lot is not a happy one
Article Abstract:
Substitutes to the letter of credit sale include arrangements such as the COD sale and carriers' use of protective tariffs or their ratification of wrongful receipt of non-cash payments, but these have pitfalls which may leave the unpaid seller without any real recourse. Court cases indicate that the risk of forgery and counterfeit checks will be the shipper's as long as the carrier receives financial instruments which are facially valid. A contract between shippers and a COD buyer to inform the shipper of the name of the bank used by the buyer might be a way for the shipper to learn from the bank if a cashier's check or certified check was issued. Impostership becomes particularly dangerous in the Internet age.
Publication Name: Commercial Law Journal
Subject: Law
ISSN: 0010-3055
Year: 1996
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Letters of credit: what does revised Article 5 have to offer to issuers, applicants, and beneficiaries?
Article Abstract:
Revised UCC 5 provides a more rational and equitable balancing of the interests of applicants, issuers and intended beneficiaries of letters of credit than former Article 5. Issuers have benefits such as the lack of liability for consequential or punitive damages. According to UCC 5-117(a), upon honoring credit the rights of the issuer become subrogated to those of the beneficiary and the applicant. Applicants and beneficiaries also obtain specific benefits under revised Article 5, which also provides a system which accomodates practices of the computer age.
Publication Name: Commercial Law Journal
Subject: Law
ISSN: 0010-3055
Year: 1996
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An analysis of the recent revision to Article Five of the Uniform Commercial Code: letters of credit
Article Abstract:
UCC Article 5 has been revised in order to provide solid legal guidelines for letters of credits in an era in which they are being increasingly used. The revisions were completed in 1994 and approved in 1995. Affected provisions concern areas such as definitions of letters of credit, form of credits, remedies and obligations, assignment of proceeds, subrogation, warranties, transfer of credits, fraud, and nondocumentary conditions.
Publication Name: Commercial Law Journal
Subject: Law
ISSN: 0010-3055
Year: 1996
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