Krysenko A. Economical and Legal Regulation of Letter Of Credit Use

Research object: relations which are folded in connection with the use of letter of credit the subjects of menage. Research purpose: ground of new theoretical positions, development of suggestions on the economic legal adjusting of the use of letter of credit on the basis of complex analysis of domestic and foreign legislation, analysis of the systems of theoretical sources, sending and results of influence of letters of credit to economic activity. Research methods: dialectical, comparative legal, system structural, historical, formal legal, formal logical. Theoretical and practical value: on the basis of complex research of the use of letter of credit new theoretical positions are grounded in economic activity, conclusions and developed suggestion in relation to the legal aspects of the use of letter of credit in economic operations. Suggestion on the improvement of the Ukrainian legislation will be taken into account at preparation of proper normatively legal acts by Committee on questions of finances, bank activity, tax and custom policy of Verkhovna Rada of Ukraine and by the National bank of Ukraine. Drawn on research results in activity of LTD. "TPK UKRSPLAV". Scientific novelty: considering the legal nature of letter of credit its definition was done, it was itemized the functions of the letter of credit in the economical activity and extended classification basis of the letters of credit at the expense of functional purpose according to which standby and classic letters of credit were separated. It was argued the basis of the letter of credit use in the economical activity is economical legal contract and it was offered to expand essential provisions of contracts under which payments are done with the use of letter of credit. The order of letter of credit use for payment for economical obligations is researched and it was offered number of propositions for its improvement. The principles of autonomy and strict compliance of letter of credit were analyzed and limitation of their effect was grounded. Subject to the signs of standby letters of credit it was argued its belonging to the means of assurance of economical liabilities fulfillment and order of its use by the subjects of the economical activity was developed. Sphere of the use: subjects of initiation of bill; subjects of menage; higher educational establishments.