Analysis Of The Legal System Of Trust Receipt

The Trust Receipt System, born of Equity in the Common Law System and concept of trust, is used to solve the issue, what kind of rights bank has to the imported goods when it releases the documents to the importer. Under the trust receipt, importers commitment to banks he disposes of the goods as banks’ trustee. And the relationship ends when importers pay back the sum. To meet the further financing need of importers, this temporary system also provides a way to protect commercial banks’ creditors’ rights. So Trust Receipt is introduced into domestic banks. But because of the unclear basic legal relationship, the inexplicit definition, the inharmonious with existing security legal system and the unsound registration system, the perfection of Trust Receipt is very urgent for the risk prevention.Basing on the earlier research, the author focus on the problems arose in the course of putting trust receipt into operation. To analyze clearly, positive analysis, comparative analysis and other methods of analysis have applied to this paper.The paper first briefly introduces the concept, characteristics, inter relationship, external relationship and function of the trust receipt. At the same part, the paper explains the value of the trust receipt in the market economy by the comparison of the trust receipt with some other legal systems such as the trust of movable equipments, the security transfer system and the letter of hypothecation. Then, the paper draws on some valuable experience by analyzing trust receipt and relating system in two legal systems. The third part analyses the problems and current situation of the Trust Receipt System in the Mainland China. Finally, in order to make up for the defects of the current guarantee legal system and meet the needs in practice of expanding trade financing, the last part puts forward some concrete and explicit proposals for the legislation of the Trust Receipt System to solve the questions above, especially in improving the country’s largest credit rating database, the National People’s Bank of bank credit registration and consulting system, and with the establishment of the trust receipt, setting up a future trust legal relationship, which comes into effect when the appointed condition is satisfied. The author expect the legislative process of trust receipt can be further promoted and the standard can be supplied in the judicial practice for this system.