Document Type : Original Article
Authors
1
PhD Student, Department of Private Law, Qom Branch, Islamic Azad University, Qom, Iran
2
Assistant Professor, Department of Jurisprudence and Law, Central Tehran Branch, Islamic Azad University, Tehran, Iran
3
Assistant Professor of Law, Qom Branch, Al-Mustafa University, Qom, Iran
10.30510/psi.2022.325104.2970
Abstract
Letter of credit as the most widely used payment method is a dynamic and evolving phenomenon in which the rules and regulations governing this payment method are created while paying attention to the interests of buyers and sellers and in line with the development of transportation technology and increasing volume of transactions. International has been amended many times. In the meantime, the parties to a documentary credit in the general sense, including the credit applicant, the opener and the beneficiary, have obligations to each other. For example, a liability that extends credit to a beneficiary is a necessary, independent, documentary, and suspended obligation. Since the solution to many minor legal issues regarding letter of credit depends on knowing the legal nature of the letter of credit, we decided to examine the characteristics of the letter of commitment in this article. Letters of credit, including the issuing bank, may also go bankrupt. The issue of the bankruptcy of the issuing bank and its effect on the rights of the credit beneficiary and the liabilities of the credit opening to the beneficiary is not related to the principle of credit independence, but to the fulfillment of the obligation arising from the credit. The question that the present article seeks to answer is what effect this bankruptcy may have on the rights of the beneficiary, which is examined in this paper.
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