the so-called re-guarantee refers to the guarantee established for the guarantor. When the guarantor can't independently undertake the guarantee responsibility, the re-guarantor will continue to pay off the remaining amount to the creditor according to the proportion agreed in the contract to ensure the realization of the creditor's right. Both parties shall bear corresponding responsibilities and enjoy corresponding rights according to the contract.

Re-guarantee is a continuation of the guarantee chain relative to the original guarantee. Similar to reinsurance, it is a re-guarantor's credit enhancement or compensation for the credit loss of the original guarantor, and also plays a role in safeguarding and realizing the interests of creditors. Its basic operation mode is that the original guarantor transfers part of the guarantee risk responsibility to the re-guarantor at the expense of paying the re-guarantee fee.

Overview of Re-guarantee Editor

Re-guarantee is a special form of guarantee, with its unique establishment conditions and practical significance. Re-guarantee is different from * * * same guarantee, repeated guarantee and counter-guarantee. The main guarantee that can be re-guaranteed is limited to guarantee, mortgage and pledge, and there are three ways of re-guarantee: guarantee re-guarantee, mortgage re-guarantee and pledge re-guarantee. The re-guarantor enjoys all the right of defense enjoyed by the main guarantor, and also enjoys the right of defense exclusive to the re-guarantor. The re-guarantor enjoys the right of recourse from the debtor and the main guarantor after assuming the re-guarantee responsibility.

Re-guarantee is actually an institutional design for the construction of social credit system. It is an exploration and innovation to improve the guarantee system and prevent financial risks with re-guarantee, which can partially transfer the risks borne by guarantee institutions. International experience proves that the formation of re-guarantee system can directly and effectively help small and micro enterprise credit guarantee institutions share risks.

Guarantee refers to the guarantee stipulated in the Guarantee Law, that is, in economic activities such as lending, buying and selling, goods transportation, processing and contracting, creditors need to guarantee the realization of their creditor's rights by way of guarantee.

methods of re-guarantee

editing

There are three methods of re-guarantee: fixed proportion re-guarantee, excess re-guarantee and joint re-guarantee.

fixed proportion re-guarantee is agreed by the guarantor and the re-guarantor. For the business within a certain guarantee liability limit, the guarantor will re-guarantee all the similar guarantee businesses to the re-guarantor in the same proportion as agreed, and the guarantee fee and losses of each business will also be allocated and shared according to the proportion agreed by both parties.

Overflow Re-guarantee means that the guarantor re-guarantees its guarantee liability exceeding the predetermined limit to the re-guarantor, or both the guarantor and the re-guarantor guarantee the guaranteed, and the re-guarantor bears the guarantee liability exceeding the predetermined limit of the guarantor, and the guarantee fee and losses of each business are also allocated and shared according to the proportion borne by both parties.

Joint re-guarantee means that for a single guarantee business with a large amount or exceeding the guarantee capacity specified by the guarantor, the provincial and municipal guarantee institutions can sign a entrustment guarantee agreement with the guarantor and a guarantee contract with the bank after negotiation, and both parties will assume corresponding rights and obligations according to their respective responsibilities.

conditions for re-guarantee

Edit

As a special guarantee method, re-guarantee must meet the following conditions:

1. On the premise that the main guarantee exists. The establishment of re-guarantee must be based on the premise that the guarantee has been established above the principal creditor's rights, which is the object condition of re-guarantee establishment.

2. The re-guarantor must be someone other than the main guarantor.

3. The establishment of re-guarantee needs to be clearly agreed by the parties.

Re-guarantee Re-guarantee Organization

Editor

The project re-guarantee organization was established with the approval of the engineering guarantee supervision department, in order to provide specialized value-added and credit-increasing services to professional engineering guarantee companies, thus improving their market competitiveness and risk resistance, and promoting the sustainable and healthy development of the whole engineering guarantee system.

when the credit magnification of a professional engineering guarantee company reaches the limit, it can apply to the engineering re-guarantee institution for re-guarantee. If the re-guarantee institution meets the re-guarantee conditions, it can obtain the credit magnification of the engineering re-guarantee institution.

Re-guarantee institutions can rate professional engineering guarantee companies to determine the credit, overall risk control level and operating conditions of the corresponding professional engineering guarantee companies so as to determine the credit magnification.

Engineering re-guarantee institutions can optimize the living environment of professional engineering guarantee companies and guide more professional engineering guarantee companies to standardize their practice; Promote the balanced and coordinated development of the engineering guarantee industry; It lays a foundation for promoting the establishment and perfection of the whole project guarantee system.

Re-guarantee Re-guarantee Development

Editor

China's financing guarantee industry came into being in the market-oriented reform. The establishment and development of re-guarantee mechanism is an institutional innovation and an important measure to improve China's financing guarantee system. In recent years, China's re-guarantee institutions are guided by government policies, take diversified re-guarantee products as the starting point, and aim at improving the overall service capacity of the industry. By giving play to the important mechanisms of re-guarantee, such as increasing credit and capacity, compensating for risks and leading norms, the scale of re-guarantee has been steadily increased, and the leverage effect has been continuously amplified, thus further improving the overall anti-risk ability of the industry and basically forming a framework system of re-guarantee covering the whole country.

Since the establishment of Northeast Re-guarantee Company in 27, Re-guarantee has played an important role in improving the credit guarantee system for small and medium-sized enterprises. As a basic link to improve the credit guarantee system for small and medium-sized enterprises and an important system to build a long-term financing support mechanism for small and micro enterprises and agriculture, rural areas and farmers, it has been basically established. According to the "Analysis Report on the Development Prospect and Investment Forecast of China Guarantee Industry from 216 to 22" issued by Zhongjing Future Industry Research Institute, by the end of 214, 24 provinces (cities, districts) had established re-guarantee institutions or financing institutions with clear re-guarantee functions, and four provinces (cities, districts) such as Jiangxi, Guangxi, Chongqing and Sichuan were actively preparing for construction, and three provinces (districts) such as Hainan, Tibet and Xinjiang were under construction. [1]

25 re-guarantee institutions with regional and provincial re-guarantee functions (or some functions) have been established in 24 provinces * * *, among which 13 provinces including Beijing, Shanxi, Inner Mongolia, Shanghai, Jiangsu, Zhejiang, Fujian, Shandong, Guangdong, Guizhou, Yunnan, Shaanxi and Ningxia have established provincial re-guarantee institutions; Nine provinces, including Tianjin, Hebei, Heilongjiang, Anhui, Henan, Hubei, Hunan, Gansu, Qinghai, etc., have defined the financing guarantee institutions that undertake the provincial re-guarantee functions (or some functions); The business of northeast re-guarantee covers three northeastern provinces and Inner Mongolia. [2]

On August 13th, 215, the State Council issued the Opinions on Promoting the Accelerated Development of Financing Guarantee Industry, which proposed to give play to the guiding role of government policies and study and demonstrate that the national financing guarantee fund supports the development of provincial re-guarantee institutions through equity investment and technical support. The people's governments of all provinces (autonomous regions and municipalities) shall, in accordance with the principles of government-led, professional management and market operation, promote provincial re-guarantee institutions to build a unified financing guarantee system with equity investment and re-guarantee business as the link; Improve the re-guarantee mechanism, improve the management level and risk resistance of financing guarantee institutions within their jurisdiction, unify management requirements and service standards, and expand the scale of financing guarantee business for small and micro enterprises and agriculture, rural areas and farmers. [3]

Re-guarantee Re-guarantee business

Editor

There are significant regional differences in China's re-guarantee, and re-guarantee institutions in different places have different understandings of re-guarantee business. Typical business types are as follows:

general liability re-guarantee. General liability re-guarantee means that when the guarantee institution cooperating with the re-guarantee institution goes bankrupt due to poor management, the re-guarantee institution bears the guarantee responsibility that the guarantee institution is bankrupt and unable to pay, that is, the risk is at the bottom, giving confidence to creditors such as banking financial institutions, so as to enhance the credit of the cooperative guarantee institution. According to the statistics, * * * 1 re-guarantee institutions have carried out general liability re-guarantee business, among which Gansu, Henan, Shanxi, Northeast China, Hubei and other re-guarantee institutions have mainly carried out general liability re-guarantee business.

joint and several liability re-guarantee. Compared with general liability re-guarantee, joint liability re-guarantee is not unconditional joint liability guarantee. In the order of payment, it is later than the guarantee institution; In terms of payment conditions, the guarantee institution is unable to pay. Joint and several liability re-guarantee is mainly based on general liability re-guarantee, according to the needs of all parties in the market, further adjusting the premise that the re-guarantee institution assumes the responsibility that the cooperative guarantee institution is unable to pay compensation, some giving a certain grace period, and some redefining the conditions that the guarantee institution is unable to pay compensation. The final effect is that when the debtor fails to perform the debt, the creditor can ask the guarantee institution to compensate or ask the re-guarantee institution to compensate, that is, the creditor's rights are guaranteed by the guarantee institution and the re-guarantee institution, thus enhancing the credit and responsibility-taking ability of the guarantee institution.

proportional re-guarantee. Proportional re-guarantee means that the guarantee institution cooperating with the re-guarantee institution bears the guarantee responsibility to the creditor, and at the same time, it applies for re-guarantee from the re-guarantee institution according to a certain proportion, and the re-guarantee institution bears this part of the risk. If compensation occurs, it will be compensated by the re-guarantee institution according to the agreed method and proportion, so as to share the risk for the cooperative guarantee institution and ensure its asset liquidity and compensatory ability. [