Credit System And Its Development

Assignment of creditors' rights means that a creditor transfers his rights to a third party without changing the contents of the debt. The system of assignment of creditors' rights has a long history which can trace back the ancient Roman law. The development of this system attributes to the flourish of the commodity economy.In order to speed the transfer of creditors' rights and protect all the parties concerned simultaneously, almost all countries' legislators and legists try their best to found a perfect legal model to balance all parties' rights and interests. Rules for assignment of creditors' rights involve several aspects as follows: the kinds of creditors' rights which can be assigned, establishment requisites of assignment of creditors' rights, effectiveness of assignment of creditors' rights. Yet, there are still many arguments on some questions such as whether an assignment contract is valid when the assignor transfer an invalid creditors' rights to the assignee; whether the proviso set by the debtor and the debtee can affect the validity of the assignment; which assignee is the true person who can accept the debtor's performance legally when the assignor concludes two assignment contracts respectively with different assignees. Almost all these questions are concerned close with the practice in this area, and therefore it's significant to research them and provide reasonable solutions.In the practice area in mainland of China, the largest scale assignment of creditors' rights is the banks selling their NPL to Asset Management Companies. Many problems arising from this kind of practice are hardly to be solved in current Chinese legal systems. In our country, regulations about assignment of creditors' rights are not perfect, so efforts should be made to improve the system with the opportunity of the civil code being enacted.