On The Negotiable Instruments’ Credit Function

As an important commercial tool in today’s society, negotiable instruments give full play to its economic functions has an important significance for smooth commercial activities and development of society and economy. The functions of the negotiable instruments are not provided when they were created, they were created and developed with the frequency of using,the different needs of commodity economy at different period of development. To the level of social and economic development has increased significantly, and negotiable instruments system has perfected gradually, today’s negotiable instruments have become a credit tool, which have the functions of exchange, pay, credit,and the credit function including special credit function and financing function.At now, because the neglect of the two negotiable instruments’ modern functions: the credit function, resulting in our negotiable instruments are still in the status of payment and settlement tool, failed to reflect the value of promoting development for society and economy. Therefore, under the premise which the level of development in China’s market economy has been significantly increased, amending and perfecting our negotiable instruments law, so as to fully arealize the economic function of instruments, especially value the realization of negotiable instruments’ modern function, which becomes an urgent problem to be solved in today’s China.This paper is divided into four parts, first part is the chapter I, introduces three major problems, first problem is the analysis of negotiable instruments’ functions and negotiable instruments’ evolution, found out that the credit is the basic function and attribute of modern instruments;second problem is the carding of the formation of the modern system of instruments, found out that the modern negotiable instruments legal system is based on the full play of the negotiable instruments’ function;the last problem is the introduction of development and present situation of negotiable instruments legislation in our country, points out that the current problems of our country’s negotiable instruments law. This lays the theoretical foundation for further discussion below, also pointed that, in the present,negotiable instruments should be a credit tool which based on credit function’s realization, rather than a payment settlement tool which pay much attention to exchange function and pay function’ realization.Second part is the second chapter, analysis of China’s current law of negotiable instruments, found out the condition of our negotiable instruments’ realization is that still emphasize the exchange function and pay function’s realization,which are two traditional functions of negotiable instruments, as a modern negotiable instruments lack of the credit functions’ realization.However,in practice activities, similar to PayPal, electronic banking and other innovative financial instruments have caused great impact on the two traditional functions of current negotiable instruments, lowering the demand that people use negotiable instruments for the exchange and payment. But at the same time, in the practice, such as Jingdong, Suning negotiable instruments financial platforms, small loan companies and investment guarantee corporations emerges and carrying on, this way it has a positive meaning for SME’s financing, as a result it reflects the needs of the credit function. This means negotiable instruments is still vibrant, what we should do is according to the negotiable instruments’ practice request value the credit function’s realization of China’s negotiable instruments, and with this center to modify our negotiable instruments law, it can respond the scholars’ calls for the negotiable instruments law’s modification, thus it can get out of the negotiable instruments law’s modification plight.Part three is chapter III, utilized the comparative law method, according to the negotiable instruments’ legal norms of two law systems in the world, by analyzing the specific practices at their instruments’ nature, instruments circulation, instruments’ types for achieving credit function and financing function, combined with the second chapter on the condition of two modern functions’ realization and needs of our current negotiable instruments’ two modern functions in practice, it pointed out the useful experience of other countries,establish a negotiable instruments’ credit functions as the core of the negotiable instruments law,which can learn to the perfection of negotiable instruments law in the future.The last part is the fourth chapter, through the analysis and demonstration of the previous sections, that it should be based on the present instrument practice,and appropriately reference the useful experience of extraterritorial negotiable instruments to fully achieve the credit function and the financing function to perfect our country’s negotiable instruments law, mainly proposed the basic ideas of perfecting the current law of negotiable instrumentsthat include to promote the circulation of the negotiable instruments, perfect the types of negotiable instruments, build a unified market of instruments.