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	THE REPLY OF THE SUPREME PEOPLE'S COURT CONCERNING HOW TO DETERMINE THE SIGNATURE OF A GUARANTOR ON THE LETTER OF DEMAND AFTER THE TERM OF GUARANTY EXPIRES

	(Announcement of the Supreme People's Court of the People's Republic of China, (Interpretation No. 4 (2004) )April 14, 2004: The Reply of the Supreme People¡¯s Court concerning How To Determine the Signature of a Guarantor on the Letter of Demand after the Term of Guaranty Expires was adopted at the 1312th meeting of the Adjudicatory Committee of the Supreme People¡¯s Court on March 23, 2004. It is hereby promulgated and shall take effect as of April 19, 2004)


SUBJECT : INTERPRETATION; SIGNATURE OF A GUARANTOR
ISSUING DEPARTMENT : THE SUPREME PEOPLE'S COURT OF THE PEOPLE'S REPUBLIC OF CHINA
ISSUE DATE : 04/14/2004
IMPLEMENT DATE : 04/19/2004
LENGTH : 311 words
TEXT :

The Request for Instructions about How To Determine the Nature of the Signature of a Guarantor on the Letter of Demand after the Term of Guaranty Expires and the Liabilities of the Guarantor (No. 69 (2003) of the Higher People's Court of Yunnan Province), the Request for Instructions concerning How To Determine the Civil Liabilities of the Guarantor Who Affixed Its Seal to the Credit Transfer Confirmation Notice of China Changcheng Asset Management Company after the Guaranty Term Expires (No. 1 (2003) of the No.2 Civil Tribunal of the Higher People's Court of Hebei Province) and the Request for Instructions concerning the Legal Effect of the Signatures or Seals Affixed to the Demand Letter by the Guarantor and Debtor on the Same Day After the Guaranty Term Expires (No. 266 (2003) of the Supreme People's Court of Sichuan Province) have been received. Upon deliberation, you are hereby giving a reply as follows:

In accordance with the Guaranty Law of the People's Republic of China, if the creditor fails to claim the liability of the guarantor in accordance with the law when the guaranty term expires, the liabilities for guaranty disappear. After the liabilities for guaranty disappear, if the creditor sends a written notice to the guarantor, demanding it to bear the guaranty liabilities or to pay off the debts, and the guarantor signs on the Letter of Demand, the people's court may not decide that the guarantor should bear the guaranty liabilities continuously. However, if the content of the Letter of Demand is consistent with the provisions of the Contract Law and the Guaranty Law on the conclusion of a guaranty contract, and it is acknowledged by the guarantor upon signature, thus it is able to determine that a new guaranty contract is concluded, the people's court shall decide that the guarantor should bear liabilities according to the new guaranty contract.