Confirmation of the validity of security subrogation, what is security subrogation

Confirming the validity of the claim is the premise of the implementation of the guarantee payment, and its purpose is mainly twofold: one is to re-examine the validity of each contract, verify the actual performance of the contract, and lay a good foundation for the recovery work. The second is to avoid the moral hazard caused by quick and easy payment, that is, the bank staff loses the enthusiasm to collect the arrears from the borrower.

The main tasks of confirming the validity of a claim include:

1) Confirm the accuracy of the parties to each contract.

2) Confirm whether the lender has fully fulfilled its obligations under the Loan Contract and the Guarantee Contract.

3) Whether the time for filing a claim exceeds the period of guarantee liability.

4) Whether the lender allows the borrower to transfer the debt without the permission of the guarantee agency.

5) Whether the lender allows the borrower to extend the debt repayment period without the permission of the guarantee agency.

6) Whether the borrower and the lender colluded to deceive the guarantee agency to provide guarantee.

7) Whether the lender has failed to fulfill its obligation to supervise the use of the loan, resulting in the loan being used in a production field prohibited or restricted by the state.

8) Confirm the scope and amount of guaranteed compensation.

9) Clarify the right of recourse enjoyed by the guarantee institution after payment, and improve the legal requirements required to fully enjoy the right of recourse.

Note 1: When signing a cooperation agreement with a bank, the guarantee institution must stipulate the conditions for the bank to claim compensation from the guarantee institution and the compensation period of the guarantee institution, and at the same time, the bank should fully understand the compensation procedures of the guarantee institution, so as to avoid misunderstandings between the bank and affect the cooperation between the two parties in the process of compensation.

Note 2: Fast and timely guarantee payment is an important factor in maintaining a good cooperative relationship between the guarantee institution and the bank. However, while ensuring the efficiency of the claim, the guarantee institution must also consider the legal requirements required to improve the recovery work.

Note 3: The period of guarantee integer compound is the period during which the creditor should claim rights against the debtor or guarantor according to the agreement of the parties or the law. If the creditor does not claim rights during that period, the guarantor is no longer liable.

Guarantee substitution refers to the act of the guarantor repaying the debt on behalf of the debtor if the debtor fails to repay the debt as agreed. The guarantor has the right of recourse against the debtor after assuming the liability for debt guarantee, and if there is a counter-guarantee, the guarantor has the right to dispose of the collateral of the counter-guarantee.

Legal basis] Article 387 of the Civil Code.

Where a creditor needs security in order to ensure the realization of its creditor's rights in civil activities such as lending and trading, it may create a security interest in accordance with the provisions of this Law and other laws.

Where a third party provides security to the creditor for the debtor, the debtor may be required to provide a counter-guarantee. Counter-guarantees shall be governed by the provisions of this Law and other laws.

Article 389.

The scope of security of a security interest includes the principal claim and its interest, liquidated damages, damages, custody of the secured property and the cost of realizing the security interest. Where the parties agree otherwise, follow their agreement.

Legal analysis: The guarantee compensation rate is the failure of the guarantor to perform in accordance with the contract, which is the act of being performed by the guarantor. This compensation rate is the compensation percentage.

If there are both short-term (one year or less) guarantee items and long-term (more than one year) guarantee items in the current guarantee balance, in order to fully reflect the risk management level of the guarantee company and reflect the data comparison between the same period and different periods, the formula is derived as follows:

Guarantee subrogation rate = short-term guarantee subrogation rate Short-term security weight + Long-term guarantee subrogation rate Long-term security weight.

Reimbursement rate for short-term projects = (short-term projects) compensation expenses (short-term projects) released from the guarantee.

Long-term project compensation rate = (long-term project) cumulative compensation expenditure (long-term project) cumulative released guarantee amount.

Short-term guarantee weight = short-term project guarantee liability balance Guarantee liability balance.

Long-term guarantee weight = long-term project guarantee liability balance Guarantee liability balance.

Legal basis: Article 1600 of the Civil Code of the People's Republic of China The guarantee compensation rate is the failure of the guaranteed party to perform in accordance with the contract, which is the act of being performed by the guarantor on behalf of the guarantor. This compensation rate is the compensation percentage.

If there are both short-term (one year or less) guarantee items and long-term (more than one year) guarantee items in the current guarantee balance, in order to fully reflect the risk management level of the guarantee company and reflect the data comparison between the same period and different periods, the formula is derived as follows:

Guarantee subrogation rate = short-term guarantee subrogation rate Short-term security weight + Long-term guarantee subrogation rate Long-term security weight.

Reimbursement rate for short-term projects = (short-term projects) compensation expenses (short-term projects) released from the guarantee.

Long-term project compensation rate = (long-term project) cumulative compensation expenditure (long-term project) cumulative released guarantee amount.

Short-term guarantee weight = short-term project guarantee liability balance Guarantee liability balance.

Long-term guarantee weight = long-term project guarantee liability balance Guarantee liability balance.

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Guarantee subrogation means that when the borrower is unable to repay the loan on time, the guarantor will repay the loan on behalf of the borrower. Secured subrogation is usually used in situations where the borrower has poor credit or high risk to guarantee that the borrower will be able to obtain a loan. In the case of subrogation, the guarantor needs to bear certain risks because the borrower is unable to repay the debt, and the guarantor needs to repay the debt on its behalf.

What does it mean to be subrogated by security.

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Guarantee substitution means that when the borrower repays the loan on time, the guarantor will repay the loan on behalf of the borrower. Secured subrogation is usually used in situations where the borrower has poor credit or high risk to guarantee that the borrower will be able to obtain a loan. In the case of subrogation, the guarantor needs to bear certain risks because the borrower is unable to repay the debt, and the guarantor needs to repay the debt on its behalf.

Legal basis<>

The legal basis for guarantee substitution mainly includes the Guarantee Law of the People's Republic of China and the Contract Law of the People's Republic of China. Among them, the Guarantee Law stipulates the types of guarantees, the rights and obligations of the guarantor, the validity of the guarantee, etc., and clarifies that the guarantor shall perform the legal obligation of substitution and prudence when the borrower fails to perform its debts. The Contract Law stipulates the form, content and validity of the contract for guarantee substitution, and clarifies the legal effect and legal liability of the contract for guarantee substitution.

The implementation of security subrogation usually takes the following three ways:

1. One-time compensation, and the guarantee agency exercises the right of recovery.

2. The guarantee agency performs the repayment obligation on behalf of the borrower, and the guarantee substitution shall be carried out after the completion of all legal proceedings to promote the realization of the security interest.

3. The lender shall first execute the borrower's assets to make up for the loan loss through the prior procedure, and the part of the loan that has not yet been recovered shall be subrogated by the guarantee agency. Since legal proceedings and enforcement often take a long time, this method of compensation is likely to affect the cash flow of the lender, cause disputes between the lender and the guarantee agency, and reduce the attractiveness of the guarantee institution to the lender.

1. It's okay if you and I haven't repaid the loan for two years.

Failure to pay two years is overdue and may result in criminal liability. No matter what kind of loan it is, as long as it is overdue, it will face high penalty interest and liquidated damages, including credit cards, so it is recommended that you do not overstay easily. There are several main consequences of non-repayment of online loans:

1. Bear high overdue fees. For overdue fees, different online lending platforms have different names and different charging standards.

2. Facing various collections from the platform. At the beginning, when the deadline is overdue, the platform will send a text message or call ** to urge the borrower to repay, and if the borrower has not repaid the loan after collection, then the staff of the platform will give a serious warning to the borrower.

3. Facing legal action. If the loan is overdue for more than 3 months, the lending institution will collect the loan in accordance with the law. If the borrower still refuses to repay the loan, it will file a lawsuit with the court in accordance with the loan contract and the guarantee contract, and the court will take measures such as property preservation, including freezing the deposits in all bank accounts of the lender and the loan guarantor, and seizing the property that has been pledged.

2. Can a general loan guarantor still take out a loan?

During the period of being a bank loan guarantor, the guarantor can also take out a loan.

Under normal circumstances, the borrower will repay the loan by himself, and the guarantor does not have to worry about it, but the loan amount and monthly instalment amount borrowed by the borrower will generally be shown in the credit history of the policyholder.

When the guarantor needs to apply for any loan himself, the debt he guarantees will be treated as his own debt, which is usually calculated by the lender and may affect the amount of the guarantor's loan.

If the loan is used as a guarantor for another person's loan, the amount guaranteed is also regarded as a liability. It is recommended to bring your ID card and the lender's repayment schedule to the central loan department to calculate whether you can apply.