Research On The Exercising Of Hypothec In Multiple Hypothecs

With the development of market economy , entities in market frequently set several hypothecs on the same object in order to expand the approach of financing. So the phenomenon that an object has several hypothecs is common. In terms of exercising hypothec, the regulation of Real Law in our country is abstract so this article expound the exercising of multiple hypothecs.The multiple hypothecs which exceed the object's value is forbidden according to Guaranty Law, but Real Law has abolished this provision. In part 1 the author discussed the rationality and validity of multiple hypothecs.Because there is a competitive relationship among multiple hypothecs, part 2 is about the rule which these hypothecs should follow. On distributing the proceeds of the hypothecated property, if the multiple hypothecs have been set on real property, the priority sequence of liquidation for hypothecs is determined by the registration order; if the multiple hypothecs have been set on chattels, registered hypothec has priority over unregistered ones and the liquidation for the unregistered hypothecs is determined by the proportion of creditor's rights.The elimination, assignment and abandonment of hypothec before exercising of hypothec have effect on other hypothecs'exercising. In part 3, the author discussed how to exercise hypothec if the hypothecs has been altered.As a right of procedure, the order of hypothec is essential to the exercising of hypothec and the alternation of the order will affect the exercising of hypothecs. Part 4 has analyzed the effect of the assignment, abandonment and alternation of the order on the exercising of hypothec.The end of this article has discussed the exercising of hypothec when a joint hypothec exists in multiple hypothec.