The rights of the bank opening the letter of credit against the applicant and the beneficiary

The purpose of the present research is to examine the way of creating a lien on credit documents and goods and to explore the laws confirming the right to repay the claims of the credit opening bank against the applicant. Also, examining the bases and conditions of creating the right to reject shipping documents contrary to credit and refusing to pay the letter of credit and taking appropriate legal action to enforce the rights of the bank opening the credit in case of encountering a fraudulent beneficiary is within the scope of this research.

This research is of theoretical type and the research method is descriptive-analytical and the method of data collection is library and has been done by referring to documents, books and articles.

The findings of the present research show that The right to refund the letter of credit and the right to deposit on the shipping documents and credit goods in order to guarantee the repayment of the bank's claims are among the most important rights of the bank opening the credit against the applicant. On the other hand, the definitive and irrevocable commitment of the bank to the beneficiary to pay the credit amount is subject to the submission of the terms and conditions of the documents in accordance with the terms of the letter of credit.

Ethical Considerations: 

In order to organize this research, while observing the authenticity of the texts, honesty and fidelity have been observed.

The research results show if the beneficiary sends shipping documents contrary to the terms of the letter of credit, the issuing bank has the right to reject the shipping documents and refuse to pay the letter of credit against the beneficiary.