On The Consortium Mortgage

The inventory mortgage system is a system of guarantee created by continental law system countries, with certain given property of enterprises as its collaterals. This system can not only make full use of the enterprise's integrated assets, but also ensure the safety of property transactions; it may not only meet the demand of financing by enterprises, but also fully protect the interests of creditors. Hence, the system has been widely accepted by continental law system countries. At present, China has not applied the inventory mortgage system. Enterprises in our country cannot yet use this powerful financing tool to meet their ever-increasing demand. Through abstract characteristic generalization of the inventory mortgage system, this paper compares and differentiates the concepts of floating charge and blanket mortgage etc., summarizes the historical development process of the inventory mortgage system, analyzes its pros and cons as well as its importance, introduces and evaluates the inventory mortgage system as a whole. The paper also reviews how to establish the inventory mortgage system, its effectiveness as well as its realization and perishment. The paper makes an in-depth anatomy of the inventory mortgage system's operating mechanism. The author's aim is not limited to introducing and making the inventory mortgage system known to his readers, he further reviews if the inventory mortgage system may play a positive role in China's economic operation. In the final part of this paper, analyses are made on domestic and international economic development status to prove the necessity to establish the inventory mortgage system in China. The author makes comparison among overseas inventory mortgage system legislations, combined with our specific national situation, based on the inventory mortgage system draft framed in the two Property Law drafts, proposes his own opinions and suggestions as how to construct the inventory mortgage system, which conforms to the situation of our country.