Scope of Rules Concerning Personal Guarantee Agreements (Report of Workshops (4))

Kazutoshi Sugimura, Masaru Itatani and Masaki Bessho
Additional contact information
Kazutoshi Sugimura: Bank of Japan
Masaru Itatani: Bank of Japan
Masaki Bessho: Bank of Japan

No 17-E-4, Bank of Japan Research Laboratory Series from Bank of Japan

Abstract: The draft legislation revising the Law of Obligations (the Civil Code) introduces a number of new rules which impose procedural requirements on the personal guarantee agreement formation process. These new rules are desirable as people becoming guarantors without adequately considering the risks involved has been a major social problem in Japan. However, there are a number of other forms of contractual arrangements which have similar legal functions to personal guarantees. The Report of the Workshops on "Contemporary Financial Transactions and Their Regulatory Treatment" (2016) (the "Report") discusses the appropriate scope of the new requirements when parties employ forms of contractual arrangements other than personal guarantee agreements in order to achieve a similar legal function. The Report uses an analytical framework from the economics literature as a point of reference for legal discussions.

Keywords: personal guarantee; cumulative assumption of obligations (search for similar items in EconPapers)
JEL-codes: D86 K12 (search for similar items in EconPapers)
Date: 2017-03-17
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.boj.or.jp/en/research/wps_rev/lab/lab17e04.htm

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:boj:bojlab:lab17e04

Access Statistics for this paper

More papers in Bank of Japan Research Laboratory Series from Bank of Japan Contact information at EDIRC.
Bibliographic data for series maintained by Bank of Japan ().