Legal Research On Domestic Factoring Service Of Commercial Banks

This dissertation includes nine chapters. The first chapter gives a brief introduction of factoring in term of its concept considered by international standard, origin, evolution as well as its most recent operating practice. The second chapter mainly involves the basic concept and classification of factoring within the culture of domestic banking practice as well as a brief introduction and analysis on the key points of various domestic commercial banks' regulation and operating practice relating to factoring.This dissertation focuses on several key issues relating to domestic factoring on the basis of domestic the law of civil and business and "Contract Law of PRC".Combining the perceptions currently popular and operating practice, the third chapter discusses the legal nature of domestic factoring, pointing out that the legal basis of domestic factoring is the transfer of creditor's right. In addition, the fifth chapter in particular gives an in-depth analysis on several current perceptions in relation to the legal nature of domestic factoring with recourse respectively, concluding that the legal nature of domestic factoring with recourse still is transfer of creditor's right other than pledge of the right. In the fourth chapter, this dissertation analyzes several issues relating to the transfer of account receivable in domestic factoring, including: the transferability of account receivable, the validity of the transfer.The next sixth chapter gives an analysis on the issue of recourse in domestic factoring, involving the issue of recourse in domestic non-recourse factoring, duty of repurchase in domestic factoring with recourse as well as the scope and period of validity of the recourse. The seventh chapter discusses the issues of payment in domestic factoring, including the duty on the part of buyer of the account receivable, the duty on the part of seller of the account receivable and the offsetting right of the buyer of the account receivable.The eighth chapter explains the legal risk undertaken by domestic commercial banks offering domestic factoring service and the possible risk-prevention measures. At the end of this dissertation, several suggestions have been raised for commercial banks in respective of domestic factoring service.