Hypothec Fulfillment

Hypothec Fulfillment is the crucial part of hypothec system as well as the fundamental purpose of mortgage guarantee. Although our legislation has already set regulations on the hypothec fulfillment issue, there are still many problems when they are carried out into practice. The mortgagees, for example, have to pay a lot for their fulfillment of right, which therefore defers the crucial process of the whole system. How to make the hypothec fulfillment process more flexible and effective is the purpose of my writing this essay.This thesis contains four chapters.Chapter one is the general theory of hypothec fulfillment including the meaning of fulfillment, the qualifications of fulfillment as well as how to deal with the conflict between the mortgagee and other creditors without mortgage guarantee.Chapter two analyzes the format of hypothec fulfillment approaches, which is one of the chief parts of the thesis. Most of the countries in modern society follow Judicial Protectionism Mode in fulfilling hypothec. So does our legislation. Nevertheless, it costs too much in the current system since the creditors have to sue to be protected. In this fulfillment process, they have to pay much expense and wait for a long period for the final trial. Comparing with other countries'legislation, the current regulations in our country are not as effective as they are supposed to be. The author maintains that it is necessary for us to establish non-litigation process, by which the cost of hypothec fulfillment could be cut down. In order to realize the relative regulations in the newly issued"Property Law", some procedure rules should be modified.Chapter Three is also the chief part of this thesis. In this part, the author issues the improvement of fulfillment methods. In the author's point of view, the court should be awarded with the right of auction so that the expense of authorization could be saved. Meanwhile, if the two parties involved agree that the mortgage property would belong to the mortgagee when the debtor fails to fulfill the obligations under contract, this agreement should not be forbidden even if it happens at the beginning of the hypothec establishment.Chapter Four is about how to deal with the conflicts between the hypothec fulfillment and other kinds of priority rights like pawn, lien and priority right. The priority of hypothec has its limitations. When different kinds of priority rights exist in the same property, it is imperative to make it clear which one should be fulfilled first. In this part, the comparative legislation theory and regulations of bankruptcy law, tax law and contract law are utilized to detect the defects of current legislation and afterwards find improving methods. When these conflicts could be reasonably settled, the fulfillment of the hypothec could be more effective.