Application Of Accelerated Maturity Clauses In Loan Contracts In Bankruptcy Proceedings

The first chapter is a pre-existing study on the application of the acceleration clause in insolvency proceedings,which is pre-set by both parties to the loan contract and,when an agreed trigger occurs,the lender may unilaterally cause the borrower to lose the interest of the loan during the repayment period,and may take all possible measures to make the debt paid off.The acceleration clause is widely used as a lender's unilateral relief clause in practice while lacks clear legislation.Many countries regard the conditional deprivation of the borrower's interests as the analogy basis for the acceleration clause.The legal nature of the clause should be considered as the termination agreement the effect of which lies in shortening the period of fullfillment of the debt,and the debtor-creditor relationship of the two parties are due immediately.The second chapter discusses the application of the acceleration clause,starting with the possible conflicts between the clause and the basic principles of the bankruptcy law.China's bankruptcy law does not explicitly provide for the effectiveness of the acceleration clause,which may conflict with the principles of equal compensation and bankruptcy prevention in the field of bankruptcy law.Considering that creditors' right to claim the debtor to return the loan immediately as a natural development of their status at the beginning,it should be considered that recognition of the validity of the acceleration clause is not inconsistent with the principle of equal compensation.However,in order to reduce the probability of insolvency of the debtor,the scope of the conditions for the application of acceleration clauses should be limited.Whether the specific condition will have a negative impact on the debtor's solvency ability should be evaluated as a criterion for the validity of the clause.The third chapter discusses the effectiveness of the liquidation according to the acceleration clauses.In the case of the approval of the effectiveness of the acceleration clause,the liquidation of debt should be regulated by the bankruptcy revocation system of bankruptcy law regardless of whether the actor has subject intent.The civil law revocation system does not have the function of maintaining the order of payment between creditors.There are big differences in the scope of application between those two revocation systems.Commercial banks frequently deduct the deposits of debtors to offset the accelerated debt.First of all,commercial banks should only deduct debtor's fixed time deposit.Secondly,deduction offset act should be considered as an individual liquidation and is subject to the bankruptcy revocation system as well.