Research On Law Issue About Floating And Guarantee Of Financing International Projects

The international project financing embryo originated in 1930s. This project company returns the loan by self-development, building and keeping its running. It is a brand-new financing mode by the way of project asset mortagaging. This mode was used successfully in petroleum, steel, forest, generating electricity and some large capital construction in the 1960s. The project financing guarantee is the important part of project financing frame and is 'the key of the project financing' in a degree. There are many forms for the guarantee of returning funds and the floating charge is one of the most important forms.Floating charge also called float mortgage and obligation burden was created in England. There is a contract between the obligor (mainly company) and the obligee (mainly bank) that the obligor guaranty the obligation with all current and future property and this is an legal system that the obligee will pay firstly with the money that comes from the selling of all of property. The mortgagor has the rights that possess, utilize, profit and dispose of freely the property that has been guarantied and the management activity is not effected after the obligor makes the guaranty and before the mortgagee exert his rights. The guarantee will not be fixed until the obligee uses his guaranty rights.The quality and character of the floating charge make it very useful and has been used broadly in international project financing. The hard problem that that some country have no ability to make guarantee or no intention to make guarantee when exploit the immense project can be solved with floating charge. The project itself is a financing method that used the project profit as the repay source and used the project asset as the guarantee. The project asset is changing with the development of the project exploitation. The project financing can utilize and dispose of the project asset. The loaner can take over all of asset of the project company and use his guaranty rights. This article clarifies the importance of the international project financing guarantee on the basis of the reality of the development of the project financing of all countries at a very fact speed and discusses the importance of the floating charge in the project financing. There is particular dissertation about the establishment, enforcement, lapsing. The article indicates the necessity and importance of the legislation of project financing floating charge according to the current situation in China.