The Fraud Rules in the Letter of Credit under Jordanian Legal System

Letter of credit (L/C) has a massive role in expanding international trade operations. It is considered the most secure and stable banking service to finance foreign operations such as import export. As an contract, potential legal issues arise due fraud practices. In this case, L/C users have be aware different approaches followed by domestic courts while dealing with at level. This paper aims identify means under rule governing its impact on Jordan's practice. By applying qualitative doctrinal approach, analyses lack organization uniform customs practice for letter (UCP No. 600). also examines, via interviews Jordanian judges, perceptions courts' policy regarding exception L/C. The finding reveals that protect interests all parties transaction, should extend scope cover sale contracts cases where bona fide holder involved when confirming bank absent, or amount not been paid yet issuing bank. respect practices, special provisions implemented commercial code must issued Jordan legislation.