• Korea Trade Review
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• v.43 no.4
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• pp.89-110
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• 2018

This paper reviews the practical operations and exceptions to the independent principle by analyzing the leading cases of English documentary credit transactions. A bank's undertaking in L/C transactions differentiates between underlying contract and other contracts. The autonomy principle is the key principle governing L/C, but this principle may be connected with unfair (unjust) payment. English Law is strongly influenced by the developments in American Law in the case of fraud, but traditionally, British courts has been very reluctant to interfere in banks' independent undertaking under the L/C. The position of British case law relating to fraud is based on Sztejn. In practice, British courts recognize fraud as an exception to the autonomy principle in which the case is sufficiently serious to render it unjust to permit the beneficiary to receive payment. British case law has historically taken a narrow approach toward intervention in the independent principle of documentary credit. Therefore, innocent parties including beneficiaries are protected by these regulations regarding fraud.

• Journal of Arbitration Studies
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• v.21 no.2
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• pp.133-156
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• 2011

This paper is to analyze the legality in which the fraud rule allow the issuer of L/C or a court to disrupt the payment to the beneficiary under the deferred payment credit when the nominated bank for deferred payment undertaking made prepayment or negotiation before the maturity date and fraud is identified to be involved. Since the function of commercial L/C is to provide absolute assurance of payment to a beneficiary, the fraud rule based on fraud exception has been known as the negative factor which lead to the disruption of "principle of independence & abstraction" under the commercial L/C transactions. As a result, the fraud rule is necessary to limit the activities of fraudsters, but its scope must be carefully circumscribed so as not to deny commercial utility to an instrument that exists to serve as an assurance of payment. But the fraud itself has not been firmly established because it is inherently pliable in its concept. There are numerous contents to describe the application of fraud to the L/C transactions as a standard such as egregious fraud, intentional fraud, L/C fraud(omitted here), flexible fraud, and constructive fraud. And so the standard applicable to the commercial transaction as the fraud rule would be high or low depending upon the various standards of fraud.

• Journal of Arbitration Studies
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• v.19 no.3
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• pp.179-198
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• 2009

This paper aims at assessing reasonableness for restraining the independence principle in the operation of documentary credit in case of the illegality appeared in the underlying transactions. It has been a major rule under the independence principle to keep the credit operation free from the defences made by the issuing bank and/or credit applicant with a view to prevent the payment as specified under the credit. And also, it is generally accepted in the international commercial community to examine a presentation to determine, on the basis of the document alone, whether or not the documents appear on their face to constitute a complying presentation. Even though these two essences are major rules in the credit operation, if a presentation is made with the documents forged or materially fraudulent, the issuing bank can refuse to pay the documents in respect of fraud rule based on fraud exception for which a court of appropriate jurisdiction would enjoin such honour. Now we have newly come to another situation to determine whether or not we have to apply the same as fraud rule which is applicable to the illegality in the underlying contract under the new conception of illegality principle based on illegality exception. English Commercial Court handled the illegality case under the case of Mahonia Ltd., v. JP Morgan Chase Bank in 2003 and Justice Colman decided that issuing bank can rely on illegality affecting a letter of credit as an excuse for failure to pay. This judgement brought about the acceptance of illegality principle based on illegality exception as a defence to payment under a letter of credit as far as the illegality concerned in the underlying transactions. It is noticeable that this case will affect our international commercial community more to rely on the illegality in the underlying transactions as a good issue to stop payment for the issuing bank in the L/C operation.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.34
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• pp.55-74
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• 2007

The documentary credit has been functioning as an indispensable tool for making international commercial transactions safer throughout the world since ICC adopted the second revision of the Uniform Customs and Practices for Commercial Documentary Credits in 1962. Letter of Credit transaction should be cleared by the principle of the trust and integrity and vile partners sometimes make a fraud on the L/C by the misinterpretation of the documents. As there is no rule but no exception, exception from application of these principles is allowed. The fraud exception nile constitutes contracting out an application of basic principles, this rule should apply restrictively and in many authorities a court does not apply this rule to nominated bank, confirming bank, and bona fide holder of draft even if fraud is involved in L/C transactions. If not, we lose a lot of benefits from the credit as valuable commercial device through reservation of these principles to take a few benefits. So, We need to recognize that the fraud exception rule should be applied restrictively. Therefore, this study reviewed condition of application and exception from application of fraud exception rule in view of Cardozo's opinion, the Sztejn court, and UCC Sections-114(2).

• Korean Journal of Fisheries and Aquatic Sciences
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• v.10 no.4
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• pp.243-258
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• 1977

1 The coastal area between Youngdo and Jodo was a common coastal water not much different from other coastal waters before the construction of the breakwater between them. 2. The breakwater between the two islands shuts off the tidal currents and divides the area . into the two small isolated bays to create quite different environments. 3. To understand the differences between then, present study examined some environmental factors such as water temperature, salinity, dissolved oxygen, transparency, and major nutrients, phosphates, sillicates and nitrites and the phytoand zooplankton. The samplings were carried out monthly from March 1976 to February 1977 at 4 stations: 2 stations in each bay. 4. Some differences were observed in the environmental factors such as water temperature, salinity, dissolved oxygen and transparency between the two bays. 5. The distribution and occurence of nutrient salts of the two bays were distinctly different each other. Northern Bay had $138\%$ of nutrients in comparison with Southern Bay. 6. Phytoplankton in Northern Bay was about $200\%$ plentier than in Southern Bay. 7. Zooplankton in Southern Bay was about $180\%$ richer than in Northern Bay. 8. One of the pollution indicator species, Synedra ulna, was observed in Northern Bay and the occurence of Euglena sp. and ciliates were much higher in Northern Bay than in Southern Bay, but, in contrast, Sagitta sp. was more abundant in Southern Bay than in the other. 9. The areas of the two bays seem to be in its way to eutrophication especially in Northern Bay. 10. The two bays have been differentiated enough to identify each other.

• Journal of Sericultural and Entomological Science
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• no.12
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• pp.17-20
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• 1970

Occasionally, We make mistake of discrimination of sex since a pair of small spots around tile abdomen of 9th abdominal of males and posterior spots of females of the silkworms larvae are found at almost same position. As already have reported, more larvae which have the small spots were found in Chinese race than the Japanese. This research has been conducted in order to grasp the rate of appearance of the small spotted larvae hereditarily when hybridize with different race (F$_1$) 1. According to the first report, average 17,8％ of the small spotted larvae are found in the Japanese race and 57.0％ in the Chinese, but my re-invested data which was carried out recently shows that average 13.6％ in the former case and 37.8％ in the latter. Those new data are supposed to be come to a conclusion that the figures are flexible but in any case high frequency of appearance of the larvae were found in the Chinese race than the Japanese (Reference Table 1 ) 2. Miscalculated ratio of the larvae from males to females are 1.2-2.6％, and from females to males are found 0.5％-0.9％ in the Japanese race, In case of the Chinese race, 7.1-9.4％ in tile former and 2.9-3.4％ in the latter. Those data also shows that more of the larvae found in Chinese race. 3. The larvae of small spotted and non-spotted are also seperated when hlybridize with different mating types and races. 4. More small spotted larvae are seen when hybridize with less appeared of the small spots of females and males which have the small spots than more appeared of the small spots of females with none spotted of the males (Reference Table 2. C.G.)B.F.). 5. More larvae of the small spots and found in case of hybridize in a group of having small spots than none of the spots (H>E). 6. With the exception of the case (A.B), in the same type of cross breeding (C.D, E.F, G,H), more larvae of the smal1 spots are also found in case of hybridize with males of having the spots than none of the spots.