Study On Legal Issues Concerning Guaranty Insurance Contract Of Credit

The guaranty insurance contract of credit means insurance company promise to the insurant that it will take on the obligation of compensation for loss if the borrower hasn't fulfilled the obligations in the contract of credit. The practice of guaranty insurance appeared in the end of the 20^th century in china. There are a lot of problems in the practice, since lack of corresponding regulate in the statue law and low study in basic theory.First, the author outlines the appearance, development, concept, feature and classification of the guaranty insurance so as to make the basic law character of guaranty insurance clear.In the second part, the author first introduces the feature of the guaranty insurance contract of credit, and points out the parties and the subjective matter of it. The character of the guaranty insurance contract of credit is one of the emphases of the paper. There are three theories, namely, surety, insurance and synthesis. At the basis of comparing the guaranty insurance contract and the surety contract, the author points out that there are essential difference between them and the guaranty insurance of credit is an independent insurance system.In the third part, the author analyses five disputed questions in the practice, namely, the effectiveness of guaranty insurance contract, the right of defense of the insurer in the guaranty insurance contract of credit, the right of subrogation of the insurer, the relationship between the guaranty insurance contract and the underlying agreements and the obligation of credit censor belonging.On the basis of the above discussion, the author brings up some suggestion about legislation of the guaranty insurance contract of credit and construction of the credit system.