Improve Legal System Of Receipt Market Benefit The Development Of It

Receipt market plays an important part of financialmarket, whichis attached importance to by our economy andsociety. Receipt market has many functions, such asfinancial supporting for corporations,distributingfunds effectively, benefiting commercy systemassociated to central bank. In addition, commercialcredit with receipt market is creditable. Credit acorporation directly giving to another can be defined ascommercial credit. A variety of commercial creditconstitutes credit network. But for the credit networkis short of convenient credit instrument and lawrestriction, the network of commercial credit may easilybreak down. Corporation may defer payment of funds asto use funds of other corporaions for themselves, orcredit overstocked products as to achieve operationalobjectives, which is easy to conceal production,avoiding surveillance from banks and other supervisoryauthorities, weakening the national enterprisemanagement and supervision, and viciously expandingcommercial credit. Corporation overloads liabilities,bank credit is in risk. All those damnifies ability ofbanks to control the sizes of credit, even causes a creditcrisis and the economic crisis. The further developmentof commercial credit promotes the commercial creditreceiptization, causes the commercial credit relationsto be protected by the negotiable instruments law, thusthe commercial credit behavior is standarded, and thecommercial credit rank is enhanced. But, the greatmicroscopic function of the receipt market relies onlegal system of the receipt market-only the receiptmarket with perfect legal system is a true creditinstrument market. We can apply a theory of the newinstitution economics to explan it: Our country is atransition country, the innovate of legal system receiptmarket (one kind of linstitution) is more important than.that of the receipt market tool (one kind of technology),the market law system is the key breath enhancingefficiency of receipt market of our country.The paper composes of the following three part:1. Introduce inadequate legal theory-scientificpayoffs. Improve inadequate legal theory and put forwardproof-test criterion of perfection of commercial paperlaw based on it. The main content is how vacancy rightdistributing among the courts, regulators, andlegislators is the best. In other words, when dangerousact occurs, the cost of dealing with it is least in theaspect of law enforcement. The cost contains that of thecourts, regulators, and legislators. The theory ishelpful to perfect law institution of receipt market forcountry in transition state. The author thinks thatproof-test criterion of perfection of commercial paperlaw composes of extent of influence of commercial paperlaw on receipt function of finance, the stability ofreceipt market, the compatibility of innovative receiptinstrument. Thus the inadequate aspects of commercialpaper law may be found, and corresponding to that, thecourts, regulators, or legislators can make their actionto improve legal system of receipt market.2. Analyse legal system of receipt market of America.Focus on vacancy right distributing among the courts,regulators, and legislators. Firstly, estimatecommercial paper law of America is better than othercountries, because receipt market of America isdeveloped. Secondly, objectively evaluate the extent ofperfect of commercial paper law of America, andsummarize its advantages. The author think that for lawis not adequate, court enforcing law is not enough. Atthe same time, the courts, regulators, and legislatorshave play correspond role and make the legal system inreceipt market perfect, such as financial credit rating,admittance to and exit the receipt market, internalcontrol of commecial banks.3. Compared with legal system in receipt market ofAmerica, analyse that of our country. The authorconcludes that the legal system of our country is in anelementary state and analyses the reason from thevacancy right distributing among the courts,regulators, and legislators. Scales of our receiptmarket are small, the quantity of transactioninstruments is also few. Why? Becouse our legal systemof receipt market has no resonable criterion. For example,commercial paper law get behind the practice as toprevent the development of receipt market and makereceipt market not bring into play such functions asfinancial supporting for corporations, distributingfunds effectively, benefiting commercy systemassociated to central bank. Besides, the central bank asthe regulator also didn't play the necessary regulatoryfunctions.4. Give some advice about receipt market of ourcourtry. Firstly, Improve commercial paper law toperfect our legal system of receipt market. Secondly,give some ideas about vacancy right distributing amongthe courts, regulators, and legislators, especially thatof regulators.