ABSTRACT
This chapter looks at the disputes involving sale and purchase of government bonds and enterprise bonds. It examines the way in which these disputes are dealt with by the people's courts. Borrowing government bonds is where one party borrows government bonds from another party for a certain period of time. The borrower pays a fee and returns the borrowed government bonds at the end of the period. A loan transaction happens when a proposed issuance of enterprise bonds is signed by the parties in their agreements but the real transaction followed is a loan transaction in which no bond is actually issued but a sum of money is lent from bond "subscribers", "underwriters" or "issuing agents" to the enterprise "issuers". The 1995 Security Law and relevant general provisions of the 1986 General Principles of Civil Law are the primary sources of the security law the people's courts apply to deal with guarantee issues in the disputes involving enterprise bonds.
