A Study On The Legal Issues Of Breach Of Liquidation In Advance

Liquidated damages owing on the loan measures in banking and legal science has attracted a great deal of controversy,there are two main types of the argument: the idea that behavior is a kind of owing on the loan default behavior, damage the overdue interest income, banks charge a penalty due to breach of contract and reasonable; another argument is that early repayment behavior contrary to the default behavior, we cannot treat as the same, and belongs to the behavior of the obligor’s positive performance, owing on the loan should be approved, charge a penalty due to breach of contract for borrowers owing on the loan is not fair. Yet for this problem is not enough of theoretical research of law in our country, the domestic financial scholars are mainly from the study of early repayment risk control management, few from the rule of law and from the perspective of both Banks and borrowers benefits balance considerations.This article is under the background of the research in advance and liquidated damages owing on the loan repayment behavior of legal problems. Paper first part embarks from the case study, raises the problem of owing on the loan, and the cause of early repayment behavior, elaborates the impact on commercial Banks. In the second part from loan legal relationship, the detail to the legal nature of prepaying behavior cognizance, puts forward the problems existing in the charging liquidated damages owing on the loan and irrationality. The third part focuses on research and comparison of the international other countries or regions on the liquidated damages owing on the loan practices, prove to charge penalty due to breach of contract owing on the loan is not the international usual practice.In the fourth part put forward some Suggestions for protection of rights and interests of borrowers in owing on the loan, perfect the legislation about early repayment, straighten out the relationship between the corresponding legislation, and establish the equal contract relationship. To strengthen the supervision and management of the bank, in order to better protect the rights and interests of borrowers, ensure that Banks and borrowers the balance of the interests of both sides.