The Research on Lien of Rights in Mainland China-Taiwan Banks' Credit Extension to and Credit Right Assurance from Taiwan Businesses in Mainland China

• Main Authors: Fang-hui Hhieh, 謝芳蕙
• Other Authors: De-su Chao
• Format: Others
• Language: zh-TW
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/16743338130024524814

碩士 === 東吳大學 === 法律學系 === 95 === With the economic reform and open policy instituted since the 1980s, mainland China has become a major region for foreign investment, among which investment from Taiwan has constituted an increasing percentage. In November , 2001, Taiwan’s government adjusted its original Go Slow and Be Patient policy with regard to cross-straits trade and investment, to the new Active Opening and Effective Management policy. Further measures to allow direct engagement in credit extension activities between offshore banking units of banks and mainland area legal entities and natural persons were adopted in order to provide multiple channels of fund transfer for Taiwanese businessmen in the mainland and to increase their willingness to transfer fund back to Taiwan. However, with the expansion by financial institutions of direct credit extension services to Taiwanese businessmen, the question of how to protect the banks’ interests remains a crucial one to both the Competent Authorities and the financial institutions. Though the use of collateral has long been the practice to protect the banks’interests, with the change in social and business patterns, ideas of property as well as in relevant laws, the role of lien of rights has become increasingly important as a type of collateral. It is therefore the aim of this thesis to study and analyze the lien of rights of mainland China, particularly the lien of rights and ways of setting up, and exercising the lien of rights, so that the risks of extending credit to Taiwanese businessmen in China could be reduced through the use of the lien of rights. Furthermore, though the government has allowed direct engagement in credit extension activities by financial institutions to the people, legal entities and natural persons in mainland China, certain restrictions still apply toward who qualifies for the credit and how much the credit could amount to. Mainland China is also a country with high restrictions on foreign currency and has long used a system of registration toward foreign debts and collateral. To ensure the legality and effectiveness of credit borrowing and collateral provision by businesses located inside China to overseas financial institutions, Taiwanese financial institutions should not only observe Taiwanese laws but also attain a detailed understanding of relevant practices in China related with the system of foreign debts and collateral. This thesis also discusses these relevant practices and regulations in the hope that credit extension activities could function and develop smoothly based on an understanding of laws and rules on both sides of the Taiwan Straits.