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China's Legal Issues Related To The Construction Of The Ship Mortgage Financing

Posted on:2009-03-14Degree:MasterType:Thesis
Country:ChinaCandidate:W M TanFull Text:PDF
GTID:2206360272960258Subject:Law
Abstract/Summary:PDF Full Text Request
Ship building is an expensive and time-consuming activity. Hence, money is of great significance to builders for completion of their ship building. Banks herein always want effective warranties on loans when faced with the high construction price of vessels and the deficiency in cash flow of the relevant shipyards. Promulgation of the PRC Property Law makes it possible to set mortgage on vessel under construction. However, whether the anticipatory effect of the law can be achieved is subject to the establishment and perfection of related provisions. As a result, legal issues concerning mortgage on vessel under construction shall be discussed in order that rights and benefits of corresponding parties be well protected.Thus, Chapter One of this paper is mainly talking about background of the discussion hereto. A brief introduction to shipbuilding contract and the related legal subjects is invented in Section One of this Chapter. While in Section Two, pressure in finance brought by the marine transportation sector and comparison between China and advanced shipbuilding countries as well as Korea in governmental policies are made. Such above factors together with the legal provisions imposed limitation on shipbuilding finance prior to the PRC Property Law, it makes floating charge a possible way to solve the current problems and promote development of China's shipbuilding (finance).In Chapter Two, related issues to floating charge are discussed. Section One of this Chapter mainly focuses on characteristics and advantages of floating charge on the basis of the UK cases out of which that provision arose. In Chapter Two, some comments on floating charge regarding its disadvantages in the UK and China is analyzed and my own idea presented thereto, which results in the reasonableness and practicability of the application of floating charge in mortgage upon vessel under construction. Such a viewpoint is subject to the fitness of vessel under construction to the requirement of floating charge on related properties and convenience in implementation of relevant mortgage right wherever floating charge is applied.In Chapter Three, the operation of mortgage on vessel under construction is discussed, including its set up, registration and implementation. Section One of this Chapter focuses on the property right issues related, i.e. property right to vessel under construction, on whose basis time to set forth the corresponding mortgage is discussed. While in Section Two, deficiency in legal provisions and validity period to the registration of mortgage on vessel under construction is briefly discussed. In Section Three, conditions precedent and ways to implementation of the aforementioned mortgage right is analyzed, and its difference from that of mortgage on finished vessel is also pointed out. In the last Section, a brief review is introduced to the Measures upon mortgage on vessel under construction of Jiangsu Province and those of Shandong Province and Liaoning Province.In Chapter Four, applicable law to the potential disputes regarding the said mortgage is mentioned, because there are relevant parties from various jurisdictions involved and differences between corresponding provisions in those countries. Section One focuses on a case adjudicated by the Wuhan Maritime Court and issues concerned. While in Section Two, possible influence out of those issues on shipbuilding is probed, and a point of view that different applicable laws shall be applied in the publication and effectiveness of mortgage on vessel under construction is made on the basis of prescription in the Convention Relating to Registration of Rights in Respect of Vessels Under Construction , 1967.After all the above discussion, we can draw a conclusion that it is of utmost importance to solve various problems related for both the protection of parties concerned and the promotion of China's shipbuilding development.
Keywords/Search Tags:floating charge, mortgage right on vessel under construction, conflict of laws
PDF Full Text Request
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