Research On The Liquidated Damages Of Advance Repayment Of The Loan Contract

The prepayment means that the borrower fails to repay the loan according to the agreed repayment plan,but chooses to repay part or all of the loan in advance before the agreed repayment period.The risk of early repayment has gradually become an important risk faced by financial borrowers.On the one h and,it directly leads to the increase of interest income and labor costs of fina ncial borrowers,and the other party has disrupted the asset management of fin ancial borrowers and increased The risk of idle funds.Therefore,some instituti ons began to emulate foreign lending institutions and charged the borrowers wi th a certain percentage of liquidated damages,which caused a wide discussion in the society.The main problem is whether the borrower's early repayment be havior is a breach of contract and the amount of early repayment of liquidated damages is more appropriate.Others have proposed that the premature repayme nt penalty clause agreed by the financial borrowing institution in the contract b elongs to the “overlord clause”.The first part of the thesis is an introduction.The background and signific ance of this paper are explained.There are few researches and books on earlyr epayment of liquidated damages in China.However,in practice,such cases em erge in an endless stream,and there are also a large number of judicial precedents,a unified referee scale has not yet been formed.The author chooses the l oan contract prepayment repayment penalty issue as the graduation thesis topic,in order to clear and solve the above problems from the perspective of theory and judicial practice,and explore feasible solutions to balance the interests of all parties.The literature review is mainly from the perspective of foreign rese arch and domestic research.Foreign scholars explore the factors affecting earlyr epayment by comparing the differences in prepayment behavior between fixed i nterest rate and floating interest rate.Domestic scholars have determined that t he factors affecting early repayment mainly include the amount of borrowing,t he fluctuation of interest rates,the state of macroeconomic development in Chi na,the term of remaining loans,and the personal factors of borrowers.The second part mainly introduces the current situation of China's early re payment phenomenon.China's early repayment phenomenon is more and more frequent,but the system of liquidated damages for early repayment has not bee n established.The research on early repayment is still in its infancy.The most important performance is that the borrower does not charge for the early repay ment of liquidated damages.Understand and disagree.The judgment of the cou rt in China also has strict requirements for the determination of the early repa yment of liquidated damages.If the agreement is that the borrower takes the i nitiative to repay the loan in advance,the liquidated damages can be collected.When the borrower defaults due to the default,the borrowing period expires in advance.The court will not determine the collection of prepayment repaymentsi n this case.The third part analyzes the prepayment behavior in detail,mainly from the concept,classification and impact of prepayment behavior.Early repayment is divided into voluntary early repayment and the borrower's default situation or t he situation that may endanger the lender's claim,leading to early repayment.The factors affecting the borrower's voluntary repayment are divided into financ ing type and non-refinancing type.Early repayment will reduce the expected in terest rate of financial borrowers,and excessive repayment will result in an increase in idle funds of financial borrowers in the short term,thus affecting the management of assets and liabilities of financial borrowers.The fourth part and the fifth part mainly analyzes the prepayment behavio r from the level of jurisprudence.The first is to discriminate whether the prep ayment behavior is a breach of contract or a breach of contract,and what is t he difference between the theory and practice.The second is to discriminate w hether the agreement on the early repayment of liquidated damages in the loan contract is in accordance with the legal requirements of the two parties,or is t he invalid “overlord clause” of the financial borrowing institution.Starting fro m the relevant legal provisions of the format clause,and analyzing whether the prepayment behavior conforms to the relevant provisions of the format clause,it is studied in conjunction with the relevant jurisprudence of the Chinese cour t.The sixth part is to demonstrate the reasonableness of the proportion of ea rly repayment of liquidated damages.Combined with the mature foreign repay ment system of liquidated damages,this paper puts forward five suggestions fo r the construction of China's early repayment of liquidated damages system,ma inly from improving China's advance The legal provisions for repayment of liq uidated damages,guarantee the fairness and fairness of contracts,and prohibit t he financial borrowing industry from restricting competition.