On The Effect On The Third Person Of Floating Charge In China "Property Law"

The floating charge of China "Property Law" (2007) has attracted wide attention. However, I found the relevant provisions in "Property Law" is too simple to support the practical application of the floating charge system. Observing operation situation of this new kind of security in the economic life, we found that it dose not play it's important part as expected. This is mainly because the existing law hasn't expressly stipulate the effect of floating charge on third part, making the banks worried about the risk of their security interests. Therefore, this article will research effect of floating charge on the third person. On the one hand, make reasonable explanation of the existing legal norms and on the other hand, put forward a sound proposal for improvement of the floating mortgage legislation.The first chapter describes the basic theories that are well relavent to the effect of the floating charge on the third person. The general effect of the mortgage contains both effect on the mortgagor and the effect on the third person. Compared with the traditional mortgage, effect on the third of the floating charge is special in sevaral aspects.Chapter2 mainly explores the scope of the third persons that are effected by the establishing registration of floating charge. Floating charge is set up when the mortgage contract comes into effect , but shall not be against a bona fide third party without registration. I explain the he range of "third person" within the meaning. Then I find out that the word "goodwill" here should be interpreted with the objective of the view. In addition,this chaper discusses details of the special rule of " buyer in the ordinarlly course of business ".Chapter 3 mainly explores effect of the floating charge on third parties in crystallization. The key issue is how to deal with priority of different kinds of rights in coexistence. Several rules are set up in this part. Lately , this section also discusses the necessity of publicity process of crystallization.