The Study Of Floating Charge In The Project Finance

20th century 80's, urbanization has become a subject of China's development, city construction changes with each passing day, the living environment of urban residents and the quality of life improve significantly. This is the construction of urban infrastructure. Urban infrastructure, including transportation, airports, ports, bridges, communications, water conservancy and the city water supply and drainage, gas supply, electricity supply facilities and the provision of intangible products or services, cultural, health and other departments in science and education needed for fixed assets. It is the basis of all business, production and operation units and the residents working and living material of the common foundation, which ensure the normal operation of the facilities. It is an important condition for material production and is an important condition for the reproduction of labor. If lack of basic facilities, it will become a serious bottleneck about economic development. A large-scale Infrastructure project, with high cost and high risk, makes government hardly bear. So government consider attract new sources of funding, such as private capital, participating in infrastructure. Project financing came into being.Project financing is a new mode of the international financing in the 20th century 40^th. After nearly 70 years innovation and development, it has become an important means in many large-scale projects funding. It effectively solves the problem on project shortage of funds with government and infrastructure strong demanded. Since the mid-20th century of 80, China introduced commercial loans and carried out a series of project finance practices. Shajiao B Power Plant in Guangdong is the first construction financing BOT projects to try new mode. After, it has been widely applied in China's energy, petrochemicals, electronics and other fields. Other Successful and typical examples are laibin power plant in Guangxi, Rizhao Power Plant in Shandong, Nanpu Bridge in Shanghai and so on. Attention and research projects financing, particularly application in the construction of infrastructure practices, is significance. In our country, investments in infrastructure has a huge funding shortfall in long-term. In the end of 2008, government launched 10 central economic policies to stimulate domestic demand, a total of 4 trillion of funds required, central government can provide financial support for 1.18 trillion, how the other funds come from? And 10 central economic policies are focus on infrastructure construction. Hence, the financing become the priority. Because of the particular financial structure and management model, the lending bank, which provides project loans, faces great risk. How attract foreign funds for the implementation of oil, electricity and other capital-intensive large-scale infrastructure construction, a well-security system design project is crucial. So floating charge is necessary in project finance security systems.In addition to the introduction and conclusions of this paper, this paper has three parts, about 3 million words.The first part is about the basic theory of project financing, project financing security system and floating charge. Project finance is based on the project assets, the expected return or the rights and interests of secured financing, with high financial needs and risk characteristics of the complex. So based on the make full use of assets, and reasonable assessments of risk, company provides a wide range of project financing and credit guarantees to the lending bank, which becomes a natural success choose. Floating charge has unique benefits: the debtor could manage business in the ordinary course of business; the subject matter of the floating charge is uncertain; security could crystallize when some special events happened. Therefore, basis on floating charge requires in the law of the United Kingdom and the United States, this paper discuss f the concept, features, and other legal relations of floating charge, specially focusing on the subject matter of floating -" now and after-acquired property ", discuses, such as, does after-acquired property from the possibility of future can breakthrough security-specific property theory, does after-acquired property can be contained in the agreed scope of security, whether Receivable Accounts can be used as floating part of the subject matter exists. I think that the floating charge, in project finance, can be secured substantial cost savings, and give full play to the value of the assets, and suppress other security through appropriate legal documents, and be able to more effectively take over the protection of the interests of lenders in the case of default by the exercise, and other advantages make up for the lack of fixed security.The second part discusses floating charge in the practice of project financing security, basis on of the law in the United Kingdom and the United States secured floating law system. At the establishment and restrictions, the Anglo-American law set up floating security benefits through security contract, at the same time through a restrictive clause in the loan limit debtor set other loan secured in any fixed security. And the effectiveness of the registration, the United Kingdom and the United States are requested to fill in basic data security on one table, and then sent to a specific government or government-designated registered to make registration. The effectiveness of the registration in the United Kingdom is " aware of the presumption ", because of "Uniform Commercial Code", at the United States, the priority of security interests have specific requirements. At the crystallization, such as liquidation and closure of the project company may cause the activities of construction or termination issues happened, assigning a manager to take over the creditors, secured creditors control right intervention, the terms of crystallization of the security effective and so on, can lead to crystallization, crystallization cause termination the borrower's right to management of company's assets. In priority areas, because of British law about floating charge registration system did not provide a unified order of priority, which resulted in the priority of the rights and interests of all creditors depends on the subsequent charger whether or not know earlier information, which make creditors' benefits lack of protections; priority class in the United States, with the exception of no need to archive security, price of gold and secured the right to a security interest earnings, the first-in-time security, will be the best right to be used for reference. At the implementation of the floating charge, in order to put better security system for the practice of project financing, I think administrative receiver of the United Kingdom law, which could take over the company's property and be fully replaced by the power company directors is more effective than Possessory Manager, which could be appointed in the United States law. Because the Possessory Manager can not replace the power of the company directors. The third part is about suggestions. Through the analysis of the legislation and practice in chain, this paper pointed out that chain need floating charge in the project financing. although "Property law" have some innovation in security system, its greatly reduced the scope of the secured property, shortage of restrictions measures for debtor, similar about implementation of floating charge and fixed charge, statutory registration not clear, so floating charge required by the "property law" should not meet the actual project financing requirements. Therefore, to make good use of our existing market demand for the economic environment, domestic banks' practical experience and reasonable factors on common law, china can improve at the floating subject, the scope of the secured property, the registration process, the priority of security interests, implementation. so that the floating security system can effective use in project financing practice, implementation of project financing to reduce risk, smooth channels for the purpose of financing.This paper cut in the basic concept of security project financing, project financing, and fully discussing the necessary of the floating charge in the project financing security system, then anglicizing floating charge's theory and practice. On this basis, quoting wealth of information, using comparative studies, paper compare the theory of the United Kingdom and the United States with "Property Law" article 181, article 189, article 196, pointing out that the provisions of chain about floating charge only advocate the significance of a floating charge, shortage of detailed requirements on the establishment, the registration, the crystallization and the priority. To solve this question, chain should improve the system of floating charge, not only solved the problem of foreign banks worry about the risk about application of foreign law in project financing in China, but also domestic banks could get benefits when them provide loan for the project. For this though the new provisions they could have more comprehensive security system, and promote the expansion of China's banking business. Floating security system in our country is an emerging system, but in practice there is a rich practical experience, how to make the floating security system with Chinese characteristics reflected and make it adapted to China's national conditions, it is the difficulties and innovation of this paper. In order to better use of foreign loans, China should boldly introduce foreign floating security system, overseas practice and legislation to strengthen the security system of China, and set up a sound system of a floating security. Nevertheless, not only to attract foreign investment, strengthen infrastructure construction in China, but also to further improve our country's legal system.