On The Legal System Of Maximum Hypothecation

Maximum hypothecation is a legal system that the persons related sign a contract to guarantee the unspecific credit rights based on a continuous relationship in a time, with the worth of the guaranty. As a special hypothecation, maximum hypothecation not only has the characteristics of common hypothecation, but also has its owns. The credit rights guaranteed by maximum hypothecation are unspecific rights which will happen in the future, and so maximum hypothecation should be restricted by the maximum number of the guaranteed credit rights and the time to count the credit rights guaranteed by it actually. At the same time, maximum hypothecation is independent, it doesn't transfer with the transference of the guaranteed credit rights. The legislation on maximum hypothecation in our country is very simple, and somewhat unscientific, so it should be perfected relatively.Due to the special design of system, maximum hypothecation guarantees the safety, also the efficiency of transactions, and controls the danger and responsibility of transactions, so it has its own value of existing independently. The undeveloped legislation on maximum hypothecation relates with the undeveloped marketing economy and credit transactions in our country, but with the developing of marketing economy and the promoting of social credit, also with the arising needs in practical transactions, it's really necessary to perfect our country's legislation on maximum hypothecation.Legislation should restrict the credit rights guaranteed by maximum hypothecation in two ways, one is quality, the other is quantity, and the restriction of quality is the basic relationship from which the credit rights guaranteed by maximum hypothecation come. Because general maximum hypothecation doesn't restrict the scope of credit rights guaranteed by it, it not only can't guard the third person's benefit, but also conflicts with the subordination of hypothecation entirely, so legislation should forbid it. The credit rights not based on the relationship also don't owe to the scope of credit rights guaranteed by maximum hypothecation. The scope of the basic relationship that maximum hypothecation may adapt should be regulated in the form of generalization and also the form of enumeration, in order to give the persons related more and free choices. The maximum number of credit rights guaranteed by maximum hypothecation should be the number of total credit rights, including capital, interest etc, not only the number of capital, so the form of capital maximum hypothecation should also be forbidden by legislation.The way to establish maximum hypothecation is to sign a maximum hypothecation contract by the persons related, in order to make clear the details of the rights and the responsibilities of the two parts, and the legislation should adopt the rule that the registration is one of the conditions to establish a maximum hypothecation. At the same time, legislation should make the system of hypothecation registration perfect, unite the departments who do the works of hypothecation registration. If the contents of maximum hypothecation contract are reformed , such as the maximum number of guaranteed credit rights, the basic relationship, the time to count the credit rights etc, in order to guard the third person's benefit, it shouldn't defeat the creditor guaranteed formerly.Maximum hypothecation is not only subordinate, but also independent, if the credit guaranteed by maximum hypothecation transfers, it surely goes away from the scope of credit rights guaranteed by maximum hypothecation, and maximum hypothecation doesn't transfer with it. At the same time, legislation should permit maximum hypothecation going away from the guaranteed credits and transferring independently, in order to realize the idea of the persons related. But the maximum hypothecation should only be transferred to the guarantor's other creditors, to warrant the guarantor's other debts. Maximum hypothecation naturally has systematical defect, it probably influent the abundant use o...