On The Research Of Proceeds Of Collaterals

As one of important legal system in real estate law field, subrogationin res had very importmant effect to financing, trade, transaction securityand protecting secured party's lawful interest. However, more researchconcerning it concentrated on the system self, and less study was about theobject of subrogation-proceeds. At present, China is experiencing hugechange, and the financing and trade activites are so active that security hasbeen entrusted higher requirements.Simultaneously transactions meanstransfer of properties and rights. What's more, expropriation and naturaldisasters cause higher transforming rate of collaterals' value state becauseof being damaged, lost or expropriated during the term of security in Chinathan developed countries. It is very hard for subrogating property theoryand actual legal regulations to direct legal practice validly because of theirlag, simplity and principle. Thence, by systemic research against proceeds,the article solved where the proceeds came from, what the proceeds were,which were proceeds, how proceeds were distinguished from otherproperties when they commigled together, how the rights over proceedswere operated and other theory and practice proplems.The article mainly included three parts: introduction, text andconclusion. The text part comprised of five chapters:Chapter one: Proceeds' theory premise–subrogation in res theory.The problem the Chapter would solve was where proceeds came from. Thepart mainly introduced the basic problem of subrogation in res theory, suchas the basic definition of subrogation in res, the theory basis of subrogationin res, the nature of subrogation in subrogation in res.Chapter two: The definition of proceeds. The chapter aimed to solvewhat the proceeds were; and firstly analysed and discussed the meaning ofproceeds, then combed the relation of proceeds and collaterals, finally investgated the key characteristics of proceeds. The chapter identifiedproceeds belonged to res or collaterals, nonetheless proceeds were not sameas general collaterals and should be one of special collaterals.Chapter three: The classification of proceeds. The chapter answeredthe question which properties were proceeds. It was very essential tomaintain the whole security system and protect secured party's interestabout how to identify the scope of proceeds. In fact, the scope of proceedswas not same under different countries's law. In the chapter proceeds weredivided several kinds according to comparation and study very carefully. Atlast the author think over the effecting regulations and gave some advice.Chapter four: The identification of proceeds. The chapter would solvehow to distinguish proceeds from other properties when proceedscommingled with other properties. Under theory, it was easy to identifywhether one property should belong to proceeds. However, it was oftenhard to distinguish proceeds from other properties when proceedscommingled with other properties. Under this circumstances how todistinguish and identify proceeds would involve protection of securedparty's interests and balance the different interest among creditors, debtorsand third parties. Based upon introduction of similar rules in foreigncounties and reference of judicial practice in China, the chapter discussedand anaylsed the rules of proceed identification in China. At last some legaladvices had been listed against the existed problems in the chapter.Chapter five: The operation of the right against proceeds. The chaptersolved the problem how to operate the right against proceeds. Firstly thechapter did some comparative study against other countries'laws. As one ofrights which object is proceeds, subrogating right owned its operatingcondition and way,which were very different in other countries. The authorpaid more attention to related specific cases and researched the operationgconditions and modes of subrogating right, then discussed the relationshipbetween the operation of subrogating right and achievement of real rightsfor security. Finally author's own auguments and advices were proposed.