Study On The Surety Bonds Systems

Surety Bond was introduced into China for 30 years as a way of Construction Guarantee,but it has a poor development because of the lacking of law and people's overlook.This paper will study the Surety Bond's law of America and Taiwan,then compare them with each other and discuss the character and the important issues of Surety Bond.Finally,based on the results of the research it would propose for the construction of our country's Surety Bond system.This paper is divided into three parts.The first part will introduce the development of the Surety Bond in the United States and Taiwan,as well as the existing provisions about it through comparative research.Then based on the current situation of the development of Chinese Surety Bond,put forward the problems should be paid great attention,respectively about its legal attribute,the insured's right of defense and claims.The second part carries on the problems of first part,it demonstrates Surety bond is different from guarantee as well as other property insurance in legal attribute through the contrast research,it is a special kind of property insurance.Then it discuss the particularity of Surety Bond's contract,demonstrate the scope and conditions of the right of defense that the insurer has,and the right to claim compensation after insurer compensates shall belong to the right of subrogation.The third part proposes for the construction of our country's Surety Bond's system on the basis of studying the former two parts,respectively is guaranteed through legislation on the top design,through optimization design in our business risk control,create a suitable project in the external environment in the development of Surety Bond.