Cases with Objection to the Pledged Equity by the Hainan Branch of Bank of China
· Document Number：No. 126  of the Enforcement Office of the Supreme People's Court
· Area of Law： Civil Law
· Level of Authority： Documents of Judicial Interpretation Nature
· Date issued：08-26-2003
· Effective Date：08-26-2003
· Issuing Authority： Supreme People's Court
· Status： Effective
Reply of the Enforcement Office of the Supreme People's Court on Issues concerning Cases with Objection to the Pledged Equity by the Hainan Branch of Bank of China
(No. 126  of the Enforcement Office of the Supreme People's Court on August 26, 2003)
The Higher People's Court of Hainan Province:
Your Report on the Enforcement of 7.5 Million Shares of Haikou Pipeline Gas Company Limited (No. 26-8 , HPC, Hainan) has been received. Upon deliberation, the following reply is hereby made:
Where a notary office can prove the enforceability of a notarized debt instrument in accordance with the Reply on Issues concerning the Legal Enforcement of Notarized Debt Instruments as issued by the Supreme People's Court and the Ministry of Justice on April 9, 1985, such an instrument shall be confined to “an instrument on demanding payment of debts or claiming compensation for articles” as set forth in Item (10) of Article 4 of the Interim Regulation of the People's Republic of China on Notarization; even through the judicial interpretations hereafter have enlarged the scope of notary jurisdiction, no guarantee agreement is included. Therefore, the No. 1527  Notary Certificate issued by the No. 2 Notary Office of Hainan Province for the Collateral Agreement on November 26, 1997 and indicating that it had an enforceable legal effect does not comply with the provisions of laws.
In accordance with Article 168 of the Civil Procedure Law of the People's Republic of China (for Trial Implementation), where the people's court accepting an application finds that the notarized instrument is erroneous, it shall refuse to execute the instrument, and notify the original notary office. Therefore, your enforcement against the guarantor, Hainan SEG Gas Co., Ltd., in accordance with the above No. 1527 Notary Certificate is obviously inappropriate.
After receiving this letter, you shall properly handle this case according to law, and directly send the results to the objector, the Hainan Branch of Bank of China.