The Rights of Credit Issuing Bank in Supposing of Beneficiary’s Fraud

One of the most widespread tools of payment in the international contract is to pay for documentary credits. Because it provides for the parties to the transaction the greatest guarantee and the numerous risk of the international transaction will be decreased due to the existence of independent character of documentary credits in this kind of payment. According to this feature opener of credit have to perform their obligation to the payment of documentary credit money and the objections relating to the basic legal contract cannot be invoked against the beneficiary of this document. In this article, we intend to review the rights of opener’s credit in case that the beneficiary defrauded and the opener due to hidden fraud has paid its money or where the holder of a documentary credit is a bona fide person and the opener is bound versus him to pay money. The analysis of parties’ contract of documentary credits and suggestions to protect the rights of credit opener is the subject of present research.

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