Forfeiting and interpretation in China and France
|Keywords||Forfaiting Accounts Receivable Non-recourse Guarantee|
China is becoming a leading power in the international business arena with its significant performance in export. The proportion of the capital goods in China’s export is in a steady growth tendency. However, the development in its international trade financing obviously falls behind that in the goods transaction. Forfaiting is a popular international trade financial instrument fitting for capital goods and bulk commodity with medium-long term export financing. The Forfaiter purchases the accounts receivable from the exporter without recourse and the exporter, by selling the accounts receivable, collects such account in advance to achieve the goal of financing. In this area, China is a "late starter" and market system as well as the legal system in Forfaiting market has many defects. Besides, the domestic practice is much different to the international convention. The risks and the uncertain emerging in Forfaiting market under China legal background require a close approaching to this issue.Chapter One makes a brief introduction of Forfaiting on its operation and characteristics firstly and compares variety definitions on Forfaiting. The states of development in both China and overseas are also mentioned. Base on the analysis of the legal relationship among the parties in Forfaiting, the dissertation analyzes the advantages and the disadvantages to each party.Chapter Two focuses on the issue of the assignment of debt. First, it makes a clear statement that the fundamental nature of Forfaiting is assignment of the accounts receivable. After that the dissertation gives analysis to the requirements on the formal of assignment and the legal issues in two types of the assignment of debt, bill endorsement assignment and general debt assignment. When talk about the assignment of debt, the non-recourse issue in Forfaiting shall be taken into consideration.Starting from the definition of recourse, Chapter Three analyzes the ways of realizing non-recourse in Forfaiting debt assignment as well as the barriers and risks of realizing non-recourse under different legal background, especially under China laws background. Finally, it analyzes the relativity of non-recourse and the pre-condition of realizing non-recourse assignment of the accounts receivable.Guarantee is an important part in the international business trade. Chapter Four pays much attention on the guarantee issue in Forfaiting. From two different views, the guarantee on bills and independent guarantee, Chapter Four probes into the characters as well as both strong and weak points of such two types of guarantee. The dissertation puts much effort on the analysis of guarantee, especially independent guarantee under China laws background.Chapter Five is about relevant issues in the application of laws in assignment of accounts receivable and foreign related negotiable instrument in Forfaiting. In the meanwhile, it analyzes the external guarantee issue in China according to the latest regulation issued by State Administration of Foreign Exchange (SAFE) and resolves the conflicts between China’s laws and regulations in this issue.