Analysis On The Case Of Dispute Over Trust Contract Among Dongge Services Ltd.and Anxin Trust Co.

With the issue of "the Trust Law of the People's Republic of China", "the Management Regulations of Trust Investment Company" and "the Trust Investment Company Funds Trust Management Interim Measures", the orientation of the trust function has been clear, which also means bank, insurance, securities, trust has been preliminarily formed the four pillars of competing situation in China's financial system. Fund trust business demonstrated a strong momentum and the cooperation with the bank is the prominent feature in its business, which seems very successful from the perspective of practice. The cooperation between the bank and the trust has become the mutually beneficial platform of the trust business and the high-end customers'persuasion and extend business of bank. But in practice this cooperation has many not legal compliance, thus has caused many disputes. Case Dongge Services Limited v Anxin Trust dispute is a typical bank-trust cooperation disputes.Facts of this case is, Taiyuan Dongge service co., LTD., Taiyuan William enterprise planning design co., LTD gave 80 million yuan cash to Anxin trust company in twice, which is used to Xinling company loans for highway construction projects. Zhang gave Anxin trust company 10 million yuan and the money is used to buy the shock rights of Henan Xinling highway construction project company. However, when the loans have expired, Henan Xinling highway construction project company did not repay on schedule and the repurchase party failed to buy back shares at a premium. The focus of the dispute in this case is, first, whether "Henan Xinling highway loan trust contract", "the confirmation of the trust" and "the capital of the trust contract" between tthree plaintiffs and Anxin trust company are valid or not. Second, whether Anxin trust company has a fault or not in the process of execution of the trust contract. Third, whether zhang is legally-binding by the trust contract or not.For the dispute focus to the case,this paper think,first, the trust contract are valid. In accordance with the relevant provisions of the "the Law of the People's Republic of China"and "he Trust Law of the People's Republic of China", the trust contract involved dose not exist invalid situations, and from the point of view of contract structure and social impact, the trust contract should be deemed to be valid. Second, this paper think Anxin trust company did not have a fault. From the conclusion that Guangda bank appropriated the trust funds for account actual controllers and lead to the project's failure,we can be sure that Anxin trust company did not have a fault in the process of execution of the trust contract.The last, According to the article 48 of the law of the People's Republic of China contract law and article 66 of the law of General Principles of the Civil Law of the People's Republic, the angency of Guangda bank taiyuan branch is unauthorized, and zhang has no ratification, thus Zhang is free of laws.