On The Realization Of A Floating Mortgage

Deriving from the Equity Law, Floating Charge has had a history of more than a century. Under this type of guarantee, the charged property can be the present and future property of the chargor. And the chargor is entitled to dispose of these properties within certain limits. Thanks to these advantages, Floating Charge plays an important role in financing while brings the use value of the charged property into full play. As flexible and inclusive, Floating Charge has been thriving in the areas adopting the Common Law and has been assimilated by many countries applying the Continental Law. The realization of Floating Charge is the key element of this system and has been differently stipulated in different countries. Though China has taken in this system in its newly promulgated "Property Rights Law", there remains defects in its realization, resulting in its poor role of guarantee. Therefore, in this paper defects of China's Floating Charge were discussed with the realization of Floating Charge as the theme.This dissertation composes of the following three parts:First, the concept and the characteristics of Floating Charge are introduced. The establishment and realization of Floating Charge are also explained.Then the paper discussed the prerequisite of the realization of Floating Charge, i.e., crystalisation, and analyzed how a floating charge described in the Property Rights Law could change into a fixed one. Comparing the similarities and differences of executions of Floating Charge in England, the US, and Japan, the penman envisaged several solutions for problems in the execution of Floating Charge in China.Thirdly, the paper comparied the preferential rights of Floating Charge in England, the US, Japan and analyzed that of China, about which relative solutions were given for reference.At last, a discussion about the defects of Floating Charge stipulated in the Property Rights Law was given and respective solutions were also provided.