On The Impact Of Limitation Of Action For Creditor’s Rights On Security Interests

The Interpretation of the Supreme People’s Court on the Application of the Civil Code of the People’s Republic of China on the Guarantee System uses publicity as the distinguishing standard to divide the relationship between different types of security rights and the limitation period for principal claims.The reasonableness of this distinction has been controversial since the time of the Property Law of the People’s Republic of China.By comparing the laws of other countries and regions,the content of the provisions of foreign countries seems to be different,but in fact it is essentially the same,that is,to promote the extinction of various types of security interests as soon as possible.And this is exactly what our current law lacks.China’s practice of distinguishing according to the method of publicity is unhelpful,which is a misunderstanding of the meaning of the method of publicity.The nature of security interests,the extinction system of security interests,and the principle of balance of interests of all parties in security interests have all contributed to the uniform of all types of security interests affected by the limitation period of the main claim.This conclusion can also be reached through the interpretation of Articles 437 and 454 of the Civil Code of the People’s Republic of China.