The Validity Of The Security After The Main Debt Has Expired

The basic function of security interest is to realize creditor’s rights.Security notonly benefits individual creditors,but also plays an important role during the securitytransactions.The developed security system which is an important part of property lawis necessary for development of the modern market economy.Exploring the securitysystem in practical applications is good to clear security system and promote thedevelopment of the security system. To clear the validity of security when creditor’srights have expired,we have to explore security interest,creditor’s rights and creditor’srights together.This article is divided into six parts.The first part is to summary and comb the addressed problem to clear the focusof the article by the way of discussing one case.The second part is to introduce the legal regulation and the theoreticalinterpretation of the validity of security when creditor’s rights have expired, as wellas the advantages and disadvantages of the legislative mode among the civil lawcountries (Germany, Japan) and China’s Taiwan, mainland China.By defining the basic legal concepts of the creditor’s rights,creditor’s rights,limitation of action,the third part paves the way for the analysis of the validity of security when the creditor’s rights have expired.The fourth part is the main part of the article. Firstly citing different academicviews of the validity of security when the creditor’s rights have expired,and then theauthor’s point of view is followed: when the creditor’s rights have expired, the rightsfor security is not eliminated,but the guarantor can only defense against securitybased on the debtor’s limitation.The fifth part starts from the understanding and application of the Property LawSection202to clear whether Property Law Section202is applicable for right ofpledge and lien,and then discusses the problem of the guarantor to assume the securityresponsibility of the recourse after the main debt has achieved the limitation,and themortgagee overall, the effectiveness of the agreement between the parties to achievethe security.The sixth part makes a summary of the article.