On Legal Problems Of Independent Guarantee Application In China

Independent guarantee is a form of security which is independent from the basic contract. It has been more and more widely used in the International Finance, International Leasing and International Trades ever since 1960s'. In China, independent guarantee has also played very important role in domestic and international trade, the independent guarantee practice in Chinese banks is professional, large-scale and international.However, legislation and judicial practice in our country could not suit the prompt development of the independent guarantee. The legal effectiveness of independent guarantee has not been affirmed in any legal documents till today. Our courts treat domestic and international independent guarantee separately, which leads to the broken of law's unity and the foresight of concerned person's activity. Meanwhile, there is no standard for court to judge the cheating of beneficiary, which influences the credit of guarantee bank.The innovation of this article are: based on the above mentioned analysis, the writer definitely point out that we should affirm the law position of independent guarantee and widen the apply territory of independent guarantee in our country. Further more, we should improve the independent guarantee system of our country by way of establishing relevant judicial explanation. Also, the article has given tentative ideas for content of judicial explanation.As a practitioner of bank guarantee, the writer has taken much attention to the problems in independent guarantee, so, the legal problems in Chinese independent guarantee practice is hereby chosen as the subject of this article. This article aims to analyze the relevant problems and advance some useful suggestions, hopefully the development of independent guarantee in our country can benefit from this.