Comment On A Case About Security Deposit Pledge

The warrantor has opened a security deposit account in shareholding commercial banks where the internal cash have been frozen & deducted by court, whereas, warrantee in shareholding banks has put forward a lawsuit case of pledge confirmation about security deposit account when the lawsuit of enforcement has been rejected by court.During whole process of case, the two Parties hold totally different opinions whether the security deposit account can be specific, transferred or even it's effective or not. The Court of first instance & second instance have same jugements according to law, however, the result of jugements are totally different. The court of first instance insists that security deposit pledge is not effective and requires to dismiss lawsuit of prosecutor, whereas, the court of second instance insists that security deposit pledge is eventually effective and requires to repeal the judgement of the first instance, and then commutes that bank holds security deposit pledge confirmation towards gurantee company.In such simlar cases,there is a still sharp difference of opinion to the speficilization of security deposit or identification criterion about the force of its warranted contract in item 85 of the legal interpretation in law of warranty in legal practices & academic field. In legal practices, the executive court freezes and deducts the cash on security deposit account which the executee opened in bank, it seems the lawsuit cases about the dissent action of execution occur very often,especially, same cases but different jugements are very prominent.Through analysis of controversial issues as well as the effectiveness of security deposit pledge under the current law, we can point out that the financial system still has potential risk on security deposit pledge management and then appeals to standaradized requirements about the security deposit pledge openness & management towards the financial system to reduce the legal risk and better protect it from being frozen or deducted as well as to prevent the security deposit disputes from happening once again.Meanwhile,we can give some good proposals to perfect legislation for security deposit and then put forward some construtive suggestions towards the security deposit enforcement.