A Study On Legal System Of Floating Charge In International Project Financing

Since the 1940s, project financing as a new way of financing means has become very popular in the world .Since the introduction of a BOT financing project in the mid-1980s, project financing has been extensively applied in the petrochemical, electric power, transportation and other fields. However, project financing is faced with a greater risk because of its unique financial structure and management model compared with the traditional financing methods. Therefore, how to use various means of guarantee to effectively prevent the risk of project financing has become one of the key issues which the project lender considers. The means of guarantee in project financing include guarantees of security, credit guarantees, floating charge and so on. Floating charge has a flexible system value and advantages not available in other means of guarantee, so it obtains good opinions in project financing. Taking into account of the natural link between project financing and floating charge, the thesis introduces the system of project financing, places floating charge system in the general background of project financing, analyses the characteristics of the floating charge system, advantages and limitations, and explores the meaning of floating charge system. In view of the legal vacuum of our floating charge system, through the contrastive study of floating charge legal systems in Britain, the United States and Japan, and the actuality in our country, we will find the relevant information we can learn, and discuss how to establish our future legal system of floating charge.In addition to the introduction and conclusion, this thesis includes four chapters:Chapter One: International Project Financing and The Guarantee System of International Project Financing. In this chapter the author introduces the concept of international project financing, then analyzes the main features of international project financing by comparing international project financing with the traditional financing methods. Finally, the author analyzes the guarantee system which directly relates to the success of international project financing, and points out that the guarantee system is an important connecting point in project financing. Meanwhile, the author introduces several means of guarantee in project financing to point out the focus of this thesis—floating charge.Chapter Two: Floating Charge of International Project Financing. In this chapter the author introduces floating charge of international project financing which appeared firstly in the last part of chapter one. The author introduces the concept of floating charge to summarize prominent features of floating charge which are different from other means of guarantee, then analyzes reasonably the advantages and limitations of floating charge ,and points out that the mainstream of floating charge is it's superiority and the cause of it's wide use in project financing.CHAPTER Three: A Contrastive Study on the Legal System of Floating Charge (Britain, the United States, Japan, for example). In this chapter the author analyzes floating charge in British law, American law and Enterprise Mortgage Act of Japan from the creation, registration,. On the one hand it provides a useful reference for establishing our future legal system of floating charge; on the other hand it reveals the operation mechanism of floating charge, which lay the foundation for establishing our future legal system of floating charge.CHAPTER Four: Establishing Our Future Legal System of Floating Charge .In this chapter the author introduces the current situation of China's floating charge system from the aspects of practice and legislation. And deeply analyzes the obstacles of floating charge system in our country, and then proposes some suggestions for the establishment of our future legal system of floating charge according to China's actual situation.