A Study On The Practicality Of Counter-guarantee Under The Guarantee System

The market economy has developed rapidly since China's reform and opening-up policyfor almost forty years,the economic development drives a lot of fund circulationconsequentially,therefore,under thisrealistic condition,various financing modeappear in the marketinstantly.With the continuous increase of financingdemand,the security law of the People's Republic of China came into being,the security law is the law for market economy,the ultimate purpose of legislation is to improve the moral level of society by using legal means.The national property lawalso made detailed provisions on guaranty.Guarantee now has become one of the most common ways to protect our own creditor's rights in daily life,almost all large loan relationships of creditors will require the debtor to provide guarantee,but guarantee behavior is often accompanied by high risks,the occurrence of counter guarantee is to ensure that the recovery right of the guarantor can be achieved smoothly.China is a country which apply statute law,the process of judgesdecide the cases is actuallycan be regarded as using legal theoryto explain the law,the meaning of the law is to solve problems,serve the society,maintain the social fairness and justice.At present,due to the relevant laws and regulations is still very scattered,and there is no systematic single legal provision to stipulate the counter guarantee system,thus led to the fact thatthe counter guarantee systemis not functioning good enough inactual practice.The first part of this article starts from the guarantee system,introduce thecounter guarantee system through the research and discussion of it.The second part is the detailed introduction of the counter guarantee system,and introduce two concepts:supplement guarantees and comparing this guarantee,which can be confuse with the counter guarantee easily.The third part is the analysis of several judicial precedents,and to find how the missing parts of the counter guarantee system is practicing and working at present.The fourth part focuses on the existing problems of the counter guarantee system in practice,firstly is how to confirm theestablishment and invalidity of the counter guarantee;secondly is the responsibility scope specification of the counter guarantee,thirdly is the relationship between the counter guarantee and the notarization.The fifth part is tosummarize the present existing problems of the counter guarantee,and to put forward the author's suggestions,to find the direction of improvement,to provide a better legalenvironment and credit basisfor the operation of the counter guarantee.