Some countries have created statutes for letters of credit. For example, most jurisdictions in the United States (U.S.) have adopted Article 5 of the Single Trade Code (UCC). These statutes are designed to be associated with the rules of market practice, including UCP and PSI98. These rules of conduct are taken into account in the transaction with the agreement of the parties. The latest version of the UCP is the UCP600 effective July 1, 2007. Since UCP is not a law, the parties must include them in their agreements as ordinary contractual provisions. However, they remain an essential part of market practice and are an essential basis for financial law. Letters of credit were widely used in the United States during World War I, although they have been used in U.S. foreign trade for some time.  New York State has always had the most substantial and consistent jurisdiction in the United States with respect to letters of credit, due to the importance of New York banks in international trade.  The New York Bankers Commercial Credit Conference of 1920 provided the first set of voluntary L/C regulations for major banks in the United States, but these banks became the international UCP standard in 1938.  A creditor is an important means of payment in international trade. It is especially useful when the buyer and seller do not know each other personally and are separated by distance, different laws in each country and different commercial customs.
 This is a primary method in international trade to reduce the risk that a seller of goods takes when making these goods available to a buyer. It ensures that the seller is paid for the presentation of the documents provided in the sales contract between the buyer and the seller. That is, a creditor is a method of payment that fulfills the legal obligations of payment from the buyer to the seller, by paying the seller directly by a bank. Therefore, the seller relies on the bank`s credit risk and not on the buyer to obtain payment. As can be seen in Figure 2, the bank pays the seller the value of the goods when the seller provides tradable instruments, documents representing the goods themselves.   After the presentation of the documents, the goods will traditionally be under the control of the issuing bank, which offers them a guarantee against the risk that the buyer (who had ordered the bank to pay the seller) will reimburse the bank for such a payment. An Accreditation Agreement (LC), also known as Documentary Credit or Bank Credit (LoU), is a payment mechanism used in international trade to give a commodity exporter an economic guarantee from a creditworthy bank. Letters of credit are widely used to finance international trade, where the reliability of the parties cannot be easily and easily established. Its economic effect is to introduce a bank as an insurer when it assumes the counterparty risk that the buyer pays the seller for the goods.  Article 5 of the Single Code of Trade, drawn up in 1952, served as the basis for the codification of many of the UCP`s principles into national law and created one of the only legal provisions specific to accreditation in the world, although UCC rules do not cover all aspects of appropriations.  New York did subject the UCC rules to existing UCP rules and, as a result, UCP rules continued to regulate letters of credit under New York law.
 Article 5 was revised in 1995 to reflect the latest international practices codified in the PPP.  The first beneficiary may ask the ceding bank to replace the applicant. However, where a document other than the invoice is to be issued in such a way that the applicant`s name must be indicated, this requirement must indicate that it is free in the transferred balance.