ABOUT THE LEGAL NATURE OF UNIFORM CUSTOMS AND PRACTICE FOR DOCUMENTARY CREDITS

Abstract

Documentary letter of credit, as an instrument that achieves various goals in legal transactions, which can be grouped into the following functions: payment function; the security function, the lending function and the money exchange function, based on the performance of the aforementioned functions, enjoys wide application. In the course of its historical development, the documentary letter of credit was not always regulated in the same way. Considering that a small number of national legislations regulate the documentary letter of credit with lex specialis, primarily because it is most often an instrument of international payments, the paper will analyze the most important international source of law ( UCP 600) with special emphasis on their legal nature.