Legal Regulation of Banking: (The Documentary credit as a Case Study)

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Maan Abdulqader Ibrahim, Marwah Firas Abdullah Al-Rawe


The rapid advances that took place in most countries of the world has led to a clear progress, development and change in the features of economic, technological and social life in many countries of the world. This prompted most societies to speed up and race to provide their material and human requirements for the advancement in a way that serves their well-being and prosperity. Due to the variation in wealth and natural resources from one country to another, foreign trade has developed between countries in order to meet their needs by importing the needed goods and services in other countries. Therefore, it is necessary to have a method used to find a compromise between the importer (the buyer) who is in one country and the exporter (the seller) who is in another country due to the divergence between them and the different laws and regulations between countries and what the international trade rules impose. The matter requires the presence of an intermediary authority acting on behalf of the importer to receive the documents and their conformity, and to ensure that the goods arrive and conform to the specifications and conditions agreed upon between the two sides, and in return it is required that this same body transfer its price to an external microscope or authorize someone to pay the price on its behalf through documentary credits. In the foreign trade process, a contract is organized between the importer and the exporter that includes multiple, detailed and accurate conditions, most notably the value of the goods, their full specifications and the method of their payment, as well as procedures for settling disputes in the event that they occur.

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