Chattel Mortgage System

The birth of chattel mortgage system beaks up the traditional pattern of a system of estate collateral and movable pledge. It better gives consideration to the value of the exchange value and embodies the principle of "make the best use of something". Guaranty Law of the PRC and Property Law of the PRC established a chattel mortgage system, which claims to achieve security and promote economic development. But there is no doubt that there was still a lot imperfections of that system, for example, the scope of Chattel Mortgage subject, the legal validity scope of movable collateral, the publicity of Chattel Mortgage right and so on.By using the methods of comparison, economic analysis and advantage measurement and aiming at institutional efficiency and security value, the paper put forward several recommendations, based on analyzing the above-mentioned shortages, to perfect our chattel mortgage system. It consists of the four main parts.The first part to give introduction to historic evolution of chattel mortgage and the legislative style in some countries, focusing on the existence value of chattel mortgage system.The second part is about the subject matter of Chattel Mortgage. The paper analyzed the subject conditions of chattel mortgage and China's current relative regulations. Considering on the principles of property publicity credibility and transaction security, it figures out that the subject of chattel mortgage should be limited to the scope of the special chattel with reference to real estate management as well as identifiable chattel which suitable for external marked hypothec.The third part to analyze the scope of chattel mortgage effect. For financial claim guaranteed by chattel mortgage, the paper, based on essence of hypothec specific nature, points out the damages should be excluded. And it should further polish the regulation related to accessory things and attached things.The fourth part analyzes publicity defects of chattel mortgage that the existing registration system for guaranty inconsistent with the appearance theory, it will inevitably cause conflict of interest between the people who own chattel hypothec and the assignee with goodwill in property transactions. It stands in the way of transaction security. The article analyzes the meaning of legislation mode, "written establishment registration confrontation", and explore the qualities of unregistered chattel mortgage and the scope of a third person. Papers turns over to think on the existing law about chattel mortgage on a system of notification, pointing out that "the written establishment - registration confrontation" legislation mode and the resulting chattel mortgage effectiveness which have formed a impact on theory of property in traditional civil law, thus it will harm for constituting credibility, harmonious order and transaction security. Based on the above analysis, the article says that chattel mortgages for the reunification of publicity should be taken "register important elements" doctrine, and put forward specific, better proposals.