An Analysis on Several Mistaken Ideas in the Application of the Stand-by Credit

The stand-by credit is a kind of commonly used mainstreams assuring way of international financing assurance business, this is related with the character of independence , document trading of it. However, this kind of guarantee way still has some mistaken ideas in practice, it displays to be fuzzy with traditional documentary credit as one of letter of credit to stand-by credit not merely, also be indeterminate in demarcation line of asking for bank of letter of guarantee , similarities and differences and the cognition of the operation procedure, and display it in the independence that people advocate this kind of guarantee too much, and has ignored right protection of well-meaning witness under hostile behavior. The legal system in our country to the outside has already been at a developing stage, so clarifying above-mentioned mistaken ideas not merely have a necessity, but practical