The Application Of Floating Charge In Marine Finance

Floating charge is being introduced to Chinese property rights law, which will change the current system of security rights in China and reinforce the financing ability of an enterprise. The development of China's shipbuilding industry is currently plagued by insufficiency of security in marine finance practice. With the various complications, the establishment of abuilding vessel is far from resolving the aforesaid issue.As the introduction and application of floating charge in China is still on the primary stage, a lot of research has to be done. This article is about to give a general introduction as well as an analysis of the necessity of floating charge for marine finance. Floating charge can resolve the problem of insufficiency of security in marine finance. Based on the detailed analysis of the application of floating charge and the marine finance industry, the article brings forward a solution of how to apply floating chare in marine finance industry. There will be different patterns for ship owner as the financer and dockyard as the financer. The article will go further to study on financing with floating charge. In the fourth part of the article, there will be a discussion of typical and important legal relationships in financing with floating charge, which mainly include the rights and obligations of mortgagor and mortgagee and the remedies available for mortgagee. In the end, the author will come up with his suggestion for the amendment of Chinese Maritime Code based on the national and foreign legislative experience and the characteristic of China's legislation. As Property Rights Law of PRC has a rough outline of floating charge which can be abided by Chinese Maritime Code, it is not necessary to formulate different law or regulation but adding a few articles to emphasis and resolve specific and special issues according to the practical need when amending Chinese Maritime Code.