China's Commercial Bank Floating Mortgage Risk Prevention

Floating charge is a distinctive security way which initiated in England,it allow rantors occupy the property and give him the freedom to dispose of the property in daily range of business.This security way was followed by lots of countries of the two Law Systems and adopted in the Part Four of Real Right Law of the People's Republic of China,passed on March 16,2007.(for short,Real Right Law) Floating charge in the Real Right Law variate the methods of security ways.Meanwhile,It could promote effective use of properties and rantor's finance ability.However,the characteristics of floating charge could affect realization of mortgage and therefore bring risks to the morgager.By assessing the impact of the two parts duing the loan,this dissertation disclose the risks of loan process aroseing from the floating charge,Meanwhile advancing some measures to keep away from risks.Except the prelude and conclusion,this dessertation can be divided into three parts,including:Part One:By introducing characteristcs of floating charge and the floating charge in Real Right Law,the dissertation disscuss the impact of floating charge to the two part during loan so as to analyse the risks this security way.Part Two:Focusing on analysing risks of commercial bank by using floating charge in our country,the dissertation discuss the risks from two points,one is the deficiency of internal mechanism in the bank,the other is the external absence of correlative environment and system.Part Three:Based on analysis of risks,this dissertation put forward some effective ways to prevent these risks from two relative ways:one is from the characteristic of floating charge;the other is from the external correlative environment and system.