The Creditor's Rights Transfer System In Practice

Credit-assignment is that the creditor transfers its credit to others by contractmaintaining the identity of credit. With the development of the economy,credit-assignment violates the relativity theory of credit. During the process, it isessential to clarify the relationship among contract that creates the credit, contract ofcredit-assignment and credit-assignment. Notice of credit-assignment is the core partof credit-assignment. Countries have different rules on the effectiveness of notice ofcredit-assignment, the subject of notice of credit-assignment and the method of noticeof credit-assignment. China’s Contract Law doesn’t have specific content about itwhich causes inconvenience to legal practice. The effectiveness of notice ofcredit-assignment relates to the interest of every party especially under doubleassignment condition. The article suggests that the notice be the effective condition ofcredit-assignment to solve this problem. The credits that can be transferred and theeffectiveness of credit-assignment are also discussed in the article. The first chapterintroduces the credit-assignment system including the concept of thecredit-assignment, the development process of the system and the legislationconcerned the system of other countries. The second chapter focuses on the characterof the credit-assignment mainly on the problems if the credit-assignment is adisposition act and if it is related to the causation. The transferability of the credit isthe topic of the third chapter. This chapter discusses several non-transferable creditsaccording to the nature of the credit, the agreement between the parties and the law.There are some issues on the transferability of the future credit, the part of the creditand the nature credit. Then the next chapter discusses the credit acquired in good faithin brief. The fifth chapter is the key chapter of the thesis which refers to theeffectiveness of notice of credit-assignment. This thesis holds the opinion that thenotice of credit-assignment is the effective condition of the credit-assignment. Thesubject, object and means of the notice of the credit-assignment are also discussed inaccordance with the opinion. The sixth chapter analyses the effectiveness of the credit-assignment including the scope of the effectiveness and the effect of the doubleassignment.While possessing the characteristic of financing, credit has played a key role intoday’s development prevailing in global capital market. Being an important form ofcredit circulation, credit-assignment can reduce the circulation of commodities andcurrencies, effectively allocate the resources, clearly define property rights and avoidcommercial risks which have become increasingly prominent in everyday’stransactions. This article focuses on the legal basic issues on the credit-assignmentconcerned factoring and asset securitization. There is much room to improve ourcountry’s law. Through the improvement of the law credit-assignment will have agreat role.