On Claims Preservation System

The burden of a huge amount of bad loan that China's banking Industry is shouldering has become a sharp sword over her finance. Whether bank's operation is normal has much to do with the smooth operation of civil economy. Therefore, protecting bank's properties is an important task concerning China's economic healthy development.The system of breaching obligation and the system of debt's guarantee in traditional civil law is to assure the realization of debt, by which to guard the financial debt is banks' habitual thought and practice. Obligee bank is unable to stop obligors from moving, concealing and illegal treating their properties because commercial banks can't save their own debt efficiently without the right of administrative punishment. The main reason is the principle of debt's relativity, which limits the efficiency of debt between the obligee and obligor. The obligee can only ask the obligor to realize his debt, but he can't affect the third party. To avoid the awkward situation, legislation breaks through the principle and sets the system of debt's preservation giving the obligee the right of subrogation and rescission. The new system enlarges the efficiency of debt and benefits the order of social economy.The system of debt's preservation whose purpose is to prevent the obligor from reducing properties illegally consists of the right of subrogation keeping the obligor's properties and the right of rescission returning the obligor's properties. The system with the features of adjective law and substantive law is a new system that bank can use to safeguard debt effectively, and which bank must understand and master. Therefore, it is the needs of the times that the system is established and improved in china financial law or banking law according to the successful foreign legislative experience.