A Study On EBRD Modal Law On Secured Transactions

Secured Transactions play an important role in financing transactions of market economics.Every investor wants to get a big profit from his investment,which is a common sense.But in many situations, the first thing he focuses is how to avoid the investment failure.The perfect legislation Secured Transactions system is the key factor in building a good investing environment.So more and more countries pay their attentions on how to build a good system of Secured Transactions.The Full name of "EBRD Modal Law on Secured Transactions" is "European Bank for Reconstruction and Development Modal Law on Secured Transactions".After the establishment in 1991,the European Bank soon realized that it's very necessary to help those central and eastern European countries to strengthen the legal frame of secured transactions.The result is the project of "EBRD Modal Law on Secured Transactions".The drafting committee fully realized that this modal law should attain two aims,one is that this law should break the complicated legal traditions of these countries just as inefficiency,ambiguity and so on. Another one is the law should be an equation between the civil law syste, and common law system.Finally,the whole Modal Law attains both aims. The convenience of creating a charge,the clearness of priority,the simpleness of registry,all of these are examples we should follow.The civil law system traditionally divides the possessions into moveable and non-moveable and makes possessory and registry as two perfections of possessions.So there is a big gap between the moveable and non-moveable,the possessory and registry.This tradition brings two results,one is keeping the modality perfect of the code,another one is not used to modern commercial transactions in market economics. Meanwhile,the common law system gets a big breakthrough on secured transactions.The common law countries broke the "big gap",based on the problems arose from practical commercial transactions,they build a secured transactions system including lots of transactions which were under the contract law."The Ownership Law" of China absorbed lots of advantages of the common law countries.But our country should draft a particular law on secured transactions.This law should apply to commercial transactions particularly.Firstly,we should keep the good traditions we inherit from the civil law system.Second,we also should follow some good examples of common law system.And "EBRD Modal Law" finds a good balance between both two system,which is very helpful for our country.