On The Defects And Improving Measures Of Floating Charge System In China

With the rapid development and progress of global economy, all kinds of financing are also emerging. Economic development needs the increase of efficiency; there are not exceptions in financing areas too. The traditional security devices already can not adapt to the high efficiency of the operation of market economy, because traditional security devices cannot maximize the value of contents. Floating charge which comes from England equity just can make up the defects of traditional mortgages. It not only can play the exchange value of the collateral, but also can give full play to the overall utility of it. China "Property Law" introduces floating charge system, but only three provisions to regulate the floating charge, making the operability of floating charge is not strong, is not conducive to the practice of floating charge. In this paper, is in the perspective of comparative law, through the Foreign National legislation investigation and study, and based on China's realities, the author studies China's floating charge system, and then puts forward some Suggestions in order to perfect the system of floating charge and make some positive significance to the floating charge reality using which has makes some sound suggestions to the practice of floating charge.This article is divided into six parts:The first part is the establishment of the floating charge system in China. In this section, the author first describes the floating charge in the use of project financing, and then analyzes the legislative background of the floating charge in order to show the necessity and importance of the existence of a floating charge system. Although there were debates on the establishment of floating charge, ultimately the system has been established in China.The second part focuses on the development of floating charge system in our country. Now floating charge system has been established in China, setting a clear legal basis for the floating charge, but the author has almost not found any case about the use of floating charges in financing of the small and medium-sized enterprises, individual businesses and households. In response to these phenomena, the author conducts a study and summarizes the reasons standing in a bank's position.The third part is about the Floating Charge Comparative Law. In this section the author compares and analyzes England, Scotland, United States and Japan's the floating charge system, to clarify different characteristics of their floating charge system and further conclude the reasons for the effective co-operation of this system in these countries and areas.The fourth part is the evaluation of our floating charge'system. Because of the superiority of floating charge system, the introduction of this system surely has positive significance. However, there are still many about Chain are floating charge system. The author makes analysis about the subject range of the floating charge, the object range, the registration system, the rights of the mortgagee, the priority system and the realization of floating charge to find the imperfections.The fifth part is the sound advice for floating charge system. Through the analysis of the existing law, the imperfections of China "Property Law" provisions on the floating charge system can be seen. According to these shortcomings and deficiencies, the author makes some sound advice based on referring foreign legislation.The sixth part is some measures for banks to prevent risks when they adopt floating charge. The author firstly introduces a successful case of a floating mortgage, whose successful experience can be reference for other banks. Improvement of law and can not replace the bank's own risk prevention, so Banks should constantly improve their own ability to resist the risk, carefully and boldly accept the floating charge cautious boldly accept floating charge, so as to promote the development of the floating charge.