A Case Study Of Financial Loan Contract Disputes During A Branch Of A Bank,a Bismuth Industry Company And Mr.Tan

A branch of a bank and the Hongying bismuth industry company signed a "factoring agreement" for the Hongying bismuth industry company to provide a 10 million yuan in financing factoring,and the bank has paid a 10 million yuan to Hongying bismuth industry company.In fact,Hongying bismuth industry company and another bismuth company did not occurre actual transactions.That is to say,there is no accounts receivable involved in the contract.Within the appointed time of "factoring agreement",a branch of a bank required payment of accounts receivable and required the guarantor Mr.Tan,Ms.Ying,Mr.Cao and Ms.Wang undertake the guarantee responsibility,but failed.Then,a branch of a bank sued them to the court.In the litigation,the a branch of a bank,the Hongying bismuth industry company,another bismuth company,Mr.Tan,Ms.Ying,Mr.Cao and Ms.Wang have different views and reasons.There are four controversial focus.The first point is how to determine the effect of assignment of accounts receivable.The second point is how to determine the effect of factoring contract.The third point is how to determine the guarantor 's responsibility and how to determine the scope of responsibility.The forth point is if there is a fault of bank in this case.The author believes that according to the nature of the receivable transfer and factoring contract,if the transaction contract on which the receivable itself exists is invalid,the transfer of the receivable can not be established.Therefore,the factoring contract should not be established.As the guarantor signed the "maximum amount of the guarantee contract" rather than guaranteed the receivables itself,so the guarantor can not of course exempt from the warranty responsibility.At the same time,due to the Bank's own failure to review the obligations of the existence of fault,so the bank also need bear the responsibility of the receivables can not be recovered.