Floating Mortgage System Analysis

With the flexible financing functions, Floating Charge has already been developed in British-American law System over 100 years. In spite of the legal system difference, now Floating Charge is adopted by many Continental-law System countries in the mortgage regulations. In our country, the Floating Charge was transplanted selectively in the new Real Right Law. This thesis introduces the basic structure and characteristics of Floating Charge, elaborates its judiciary practices and evolution in some countries, and analyses the cause and precautions of system risk. Furthermore, this thesis probes into some practical problems of the Floating Charge established in our existent law system..In spite of the fact that we select Floating Charge due to its inherent advantage, we have to give attention on some practical problems including its constraint and its compatibility with the our existent legal system or general legal principles. Especially in the initial stages, some principle provisions were kept in the legislation to leave space for further improvement. For that reason, it is necessary for to fully understanding Floating Charge system so as to solve the unexpected problems, make this system act positive function for guaranty in our country.This thesis is divided into four chapters. The first chapter introduces the legal position and basic structure of Floating Charge. In this chapter, the connotation and characteristics of Floating Charge would be elaborated compared with the similar regulations in mortgage in order to embody the special quality of Floating Charge. After that, it introduces the basic structure of Floating Charge and summarizes the operation procedure of practice.According to the two legal systems, the second chapter discusses the financing advantage in Floating Charge, introduces the related permission, future fortune mortgage and ownership rights theory in Common Law system.Through the research of the legislation and legal practice from different countries such as England, United States, German, Japan, the third chapter fully shows the practice operation and attitudes of two legal systems, analyzes its specialty, and reflects the development of Floating Charge. The fourth chapter makes textual research of the Floating Charge in our legal system. Firstly, it introduces the detail articles in Real Right Law, General Principles of the civil law, Guaranty Law, and other laws and regulations; analyzes the legal and social backgrounds which tend to support medium and small size enterprise. Then, the author makes deeper understanding of the relevant article in Real Right Law to clarifying the reform of floating charge system in our country. Finally it proposes legislative suggestion to the cause and precautions of system risk among the scope of the regulation of registration, the process of crystal and the fulfill of rights.