American Purchase Money Secruity And Its Benefit For Our Country

The speed with which the commercial and consumer credit market operatesaccelerates the development of modern security regime. Since the promulgation of Article9 (Secured Transactions) of the Uniform Commercial Code (U.C.C.), which is the leadingmodal of the modern security law, Article 9 has broadly called the attention of scholars ofvarious countries. A few of the concepts and approaches appear to be influencing thedevelopment of international secured transactions law. Purchase money security isregulated in U.C.C. Article 9, and it evolved from Pre-code conditional sale (similarly toretention of title in Continental law system). It includes purchase money security interestand purchase money priority. Purchase money security is a new regime for our country.Therefore, this paper focuses on examining the content of the purchase money securityand analyses its definition and characters, then thoroughly discusses the regulationstructures of it in order to present feasible opinions for whether we should adopt theregime in practice so that I could do something useful for the real right legislation. -1-This paper consists of four parts apart from the preface and epilogue. The first part ismainly about the introduction of American U.C.C. Article 9. The second studies historicalorigin and survey of the purchase money security. The third part focuses on the functionalrules of the regime. The fourth part is about how to choose the purchase money securityrationally. The first part, in the first place, introduces the process of U.C.C. Article 9 cominginto being. America is a typical commonwealth country and its nation and state law systempractices separately. Because of a good many reasons, the laws promulgated by the stateswere not uniform and the conflicting between them cumbered the state-to-state trade andincreased the cost of social development at the same time. U.C.C. brewed from thissituation. The National Committee of Commissioners on Uniform State Laws andAmerican Law Institute began to draft this code on Jan. 1, 1945 and passed the officialtext in 1951. The code was promulgated in 1952. After then, U.C.C. was revised time andtime and the code was more and more perfect. Article 9 was amended again in 1998 andtook effect in Jul. 2001. The main content and system characteristic of Article 9 is alsostudied in this part. It can be said Article 9 takes the whole manner of the U.C.C., and thematerials are arranged in the order from general principles to divided principles. Thefunctional approach to characterization of secured transactions and a unitary concept ofsecurity, which are the distinctive feature of Article 9, are attractive to scholars andlegislators of other countries. The second part traces to the source of purchase money security and makes textualresearch on early prejudication about purchase money security and purchase moneypriority. It experienced a long evolving process, from the Pre-code conditional sale to thenow. Though there are similarities between the conditional sale in Anglo-American lawsystem and the retention of title in Continental law system, the purchase money security isdifferent from the retention of title. Based on the discussion, I try to define the concept of -2-purchase money security and its priority in abstract language, and emphases the feature ofthe regime is purchase money debt arises from the collateral which merely limits to goodsand software, at some degree the debtor has right to possess and use the collateralincluding the might of disposition. Then if the secured party perfects the security, he couldobtain super-priority. In the retention of title there are quite a many distinctness in despiteof sameness. The third part presents the functional rules of the purchase money security. Itdiscusses the main-part, the form and the scope of the object are indispensable when apurchase m...