On Floating Mortgage Priority

Social and economic life in China, SMEs face a big problem is the "financing" problem Bank loans for strength before, big enterprises with good credit loans, tend to drive larger exposure, but needs funding of SMEs are often required to provide full security. However, SMEs need to operate if all of the movable property security, will greatly limit the flexibility of enterprises.More than 100 years ago, the floating charge system in the United Kingdom was founded, which compared to traditional fixed mortgages, while balancing the protection of creditor’s interests and maximize the value of the mortgage, a way of financing has become more popular. In China’s real right law clearly sets out the floating charge system of movable property, even though simple, there are large uncertainties in the specific practice.In this article, select the priority of floating charge as a research topic. For creditors, floating charges after the last immobilization, how their repayment priority, on the extent to which rights will be protected, is the issue of most concern. Indeed, these issues will have a direct impact on creditors in granting loans, will. In China in terms of floating charge, there is no system, operational system of floating mortgage repayment priority, which leads to the floating charge system in actual operation in the process there is a great deal of uncertainty.This paper is divided into five parts.An overview of the first part of the floating charge system, mainly introduced the floating charge system of origin, characteristics and the floating charge system in China.The second part focuses on floating charge system and normal business activities in other priority relationship between rights holders, including the buyer, as well as other secured party. Introduces the buyer are not affected by Chase and the deficiencies of the system and the system; detail fixed and floating charge system of mortgage, pledge, Lien the right sequence to be repaid between relationships.The third part, the author describes impact of negative pledge clauses on floating lien. Analysis of a negative pledge clauses floating mortgage repayment priority relationship with set fixed security after, and two standards, will also introduce restrictions to negative pledge clauses.Part four describes the United States uniform commercial code, the purchase price provided for in the priority system and attempt to discuss the floating mortgage priority purchase price priority and time in line to be repaid; in the fifth part, the author of our floating lien gives her advice.