Chattel Mortgage System

The tradition that only real property can be the object of mortgage while the personal property can only be the object of pledge have been brought through by personal property mortgage , which meet the need of finacing . However , the system of personal property mortgage in China is not so perfect and still has a lot of defaults , such as the scope of targeted objects , the means of public summons , the precedence to be claimed when personal property mortgage co-exists with other real rights for security , and etc.This paper is based on the basic theory of personal property mortgage and composed of four main parts:Patr 1 introduces the concept and features of the personal property mortgage , and indicates some differences on the above details among China and other countries and regions through the survey and research of relative laws.Part 2 focuses on some aspects of the personal property mortgage establishment , including the scope of targeted objects , the means of public summons , the forces antagonistic to personal property mortgage registration , and etc. By studying, the following conclusions are made . First , fix the scope of the targeted objects . Second , take the way that the mortgage relation must be established by written documents and the fact that the personal property has been mortgaged must be registered as the means of public summons . The validity of registration resistance is that the personal property mortgage can not resist the third party of bona fides without registration and vice versa . Third ,make it clear that the span of the validity of registration is not the limitation and not the period that rights exist . It is the span of resistance. Forth , give the notice that the local authorities administer the registration , the registration data should be investigated through Intranet and the space validity of the registration should be all over the whole country .Part 3 indicates the validity of the personal property mortgage and the protection tothe transferee of the collateral . The mortgagees of the same collateral can not resist each other without registration . The mortgagor have the obligation to give notice to third parties that financing is occurring on the basis of the collateral described . Themethod of engraving signals on the collateral should also be accepted to perfect the public summons of the personal property mortgage .Part 4 makes an analysis of the precedence to be claimed when the personal property mortgage co-exists with the lien and the pledge .