Floating Mortgage System In The United Kingdom

Apart from preface, there are three parts, namely theory, institution and reference and eight chapters in this thesis.Preface. Perfection of securities systems is very important in each legal system because security is the oil and engine of the development of economy and there is a close relationship between them. Although the law of security has been passed in our country, there remains many problems such as simplicity of the types and defects of each kind of security which cannot meet the needs of raising money for enterprises. There are five kinds of security devices, namely guarantee, mortgage, pledge, lien and deposit. As to guarantee, creditors such as banks do rarely employ it for it is weakness as a result of a security by credit. As to mortgage, it is void if not be registered so the ambit of invalidity of security is increased and the parties do not like to use it. Moreover, the application of mortgage is largely reduced by that future assets do not be included in its subject matter. In addition, the use and flew of assets is greatly effected by the permission of creditor to dispose the assets. As to pledge, the efficiency of assets is limited by the possession of pledgee and that the pledgor has not right to dispose the assets. As to lien, it only applies to a few cases so it is not a typical security. As to deposit, it is not related to raise money. So it is very crucial to do some research on other legal systems. The floating charge called one of the most subtle creations of equity is a good subject for research to scholars of continental law and it is a common way for enterprises of the U.K. to borrow money. The floating charge can be created in all current and future assets of the enterprises to secure the debenture. The floating charge meets very well the needs of creditors and debtors because it ensures the needs of security of creditors and it entitles the right to debtors to deal with the assets of security. Where the provisions provided in the debenture have been breached, the creditor can appoint receiver to execute the security. Compared with s fixed charge, there are...