The Benefits Of Double-track System Of Bill Hypothecation In China

As the main payment and credit instruments in modern trade, bills increase the proprietary capacity. Bill Hypothecation, as a special right hypothecation, has been popular in prosperous economic life. The essence of bill hypothecation is to set lien that based on bills and to guarantee creditor's rights. In our current laws, Bill Hypothecation is based on "law of negotiable instruments", "Assurance Law" and "property law". However, these three laws lack uniform standards, and relevant judicial interpretations don't solve the conflict, but increase it. The laws also don't accord in practices.From the present conflict, this thesis analyzed the lack of theoretical research, analyzed disputes, and summarized the necessity of dual laws. The thesis also analyzed the reasons of the conflict among the Bill Hypothecation laws--the differences between Civil Law and "Law of Negotiable Instruments", the ways of protecting. These lead to the different rules according to the same legal act. It is believed that there is no conflict between "law of negotiable instruments" and "property law". If it satisfies certain conditions, both of the laws can be used, that is the Double-track system of Bill Hypothecation. According to "Law of Negotiable Instruments", the parties can set the Bill Hypothecation from "Law of Negotiable Instruments" and set the Bill Hypothecation from "property law". The former is the bill behavior, the Pawnee enjoys the bill right; The latter pawns the behavior for the civil law in creditor's rights, the Pawnee punishes the nature person's bill right based on the creditor's rights nature power generation (i.e. Pawnee's nature power) the right。So it will solve the conflict and protect the rights of both sides.