연지급신용장 선지급 지정은행 보호에 관한 연구

The Protection of Pre-Paid Nominated Bank under Deferred Payment Letter of Credit

The decision made by the U.K. Appeal Court in 2000 that the nominated bank which offered advance payment under deferred payment L/C cannot be protected from beneficiary’s fraud found before the expiry date unlike the nominated bank which offered advance payment under acceptance L/C caused a grave concern to banks related to the business. Consequently, the ICC revised UCP 600 Article 12 to stipulate that deferred payment L/C can also be protected just as acceptance L/C is. However, since UCP 600 is not a law, it will not be applied ahead of local laws when they are conflicting with each other. Therefore, we should pay attention to the fact that even if the L/C applies the UCP, the nominated bank which offered forfaiting under deferred payment L/C may not be protected in Common Wealth Nations.